The following information applies to:

[1.] Independent Contractors who are self-employed;

[2.] Self-employed businesses;

[3.] LLCs [Limited Liability Companies] who are single-member or partner ownerships.

[4.] S corporation or C corporations who are separate business entities.

GROSS INCOME:

The total income receipts received from clients.

BUSINESS EXPENSES:

The total expenses related to the operations of your business including Home Office Space expenses, Automobile Mileage, or Automobile Direct expenses, Health Insurance and Medical expenses 7.5% of your Adjusted Gross Income [AGI], Individual Retirement contributions, Business Capital transactions.

NET INCOME OR TAXABLE INCOME:

GROSS INCOME minus BUSINESS EXPENSES = NET INCOME OR TAXABLE INCOME.

Net income is what your taxes are based on.

2024 STANDARD DEDUCTION:

Credit you receive, similar to a business expense, on your individual tax returns.

[A.] Individual $14,600.

[B.] Head of Household $21,900.

[C.] Married Filing Jointly $29,200.

[D.] Age 65 or older, additional $1,950.

Exclusion amount for gifts $18,000.

“FEIE” FOREIGN EARNED INCOME EXCLUSION amount $126,500.

2025 STANDARD DEDUCTION:

[A.] Individual $15,000.

[B.] Head of Household $22,500.

[C.] Married Filing Jointly $30,000.

[D.] Age 65 or older, additional $2,000.

Exclusion amount for gifts $19,000.

Exclusion amount for gifts $19,000.

“FEIE” FOREIGN EARNED INCOME EXCLUSION amount $130,000.