Thursday, January 29, 2009
Need to feed the kids? Freelance AND work a job.
I was reading your site. Great info!
I have a question. I've run my own business for almost four years. Due to the economic downturn, I've sent my resume out a few places. I have a job offer that I am considering with a firm...I don't really want to work for someone else, but the kids need to eat.
A few questions:
1. I intend to keep my other business going...I have a few commitments and can't shut it down completely. Will having most of my income W2 prevent me from taking normal business deductions?
2. The job offer is ok, but there are no benefits at all. I want to keep deducting my health insurance premiums through my business. They say there is some kind of group plan I can get into, but I'd have to pay 100% of the premiums...so they pay nothing. Can I still deduct health insurance premiums through my business?
Glad you like my site. Thanks for letting me know.
Yes, you may work as an employee as well as freelance as a self-employed. Amount of income from each is not a factor as long as you are trying to make money as a self-employed. You may still deduct all your indie business expenses against your self-employed income even if it results in a loss. That loss would be deducted from your W-2 income.
You may not deduct health insurance premiums as a self-employed if your employer provides a group plan, even if you pay 100% of the premiums. If you continue to have insurance on your own as a self-employed you may deduct the premium cost as an adjustment to income on your tax return.