As a 1099 contractor or real estate agent, you love the freedom of being your own boss but that freedom comes with a price: higher taxes. Unlike W-2 employees, you’re responsible for your own tax withholdings, self-employment taxes, and tracking deductions and if you’re not careful, you could be overpaying thousands every year.
The good news? You don’t have to. With the right tax strategies, you can keep more of your commissions, lower your tax bill, and avoid IRS headaches. Here’s how an Austin, Texas CPA can help you save thousands every year.
1. Maximize Your Business Deductions: Track Everything!
- Why It Matters: Every dollar spent on your business could mean less taxable income but only if you track it correctly. Many realtors and contractors miss out on deductions simply because they don’t keep proper records.
- How to Save: Keep records of all eligible expenses, including:
✔ Home office setup, rent, and utilities
✔ Marketing, website costs, and social media ads
✔ Mileage, car expenses, and travel
✔ Licensing fees, professional memberships, and training
✔ Client gifts, networking events, and meals - How a CPA Helps: A tax advisor in Austin ensures you’re taking every deduction you qualify for, keeping your documentation IRS-ready, and legally reducing your taxable income.
2. Switch to an S-Corp: Reduce Self-Employment Taxes
- Why It Matters: As a 1099 contractor or real estate agent, you’re paying 3% in self-employment taxes on everything you earn. But there’s a way to cut that tax bill legally.
- How to Save: By electing S-Corp status, you can split your income into salary and distributions, which means:
– You only pay self-employment taxes on your salary (not your full income).
– The rest of your income is taxed at a lower rate—potentially saving you thousands per year. - How a CPA Helps: A CPA in Austin, Texas can analyze your income, set up your S-Corp, and handle payroll & compliance so you save money without the IRS knocking at your door.
3. Work With a CPA Year-Round: Avoid Tax Surprises & Missed Opportunities
- Why It Matters: If you’re only thinking about taxes in April, you’re already too late to maximize your savings. The biggest tax savings happen when you plan ahead.
- How to Save:
✔ Quarterly tax planning to avoid IRS penalties and make estimated payments on time.
✔ Proactive tax reduction strategies that lower your taxable income before year-end.
✔ Cash flow management so you’re never caught off guard by a big tax bill. - How a CPA Helps: A small business CPA Austin works with you year-round, ensuring you’re not overpaying and are always financially prepared.
Keep More of Your Hard-Earned Income. Start Today!
If you’re tired of handing over too much money to the IRS, it’s time to start using tax strategies that actually work. At Insogna CPA, we help real estate agents, freelancers, and 1099 contractors maximize deductions, structure their business for tax savings, and plan ahead so tax season is stress-free.
As one of the top CPA firms in Austin, Texas, we provide expert Austin accounting services to ensure your business is structured correctly, tax-efficient, and financially optimized. Whether you need an Austin tax accountant, a tax advisor in Austin, or a CPA in Austin Texas who specializes in helping independent professionals, we’ve got you covered.
Get proactive, expert tax planning from Insogna CPA. Schedule a free consultation today!