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Each year, when tax season rolls around, you're bound to hear people talk about all of the things they're going to "write-off" on their taxes. While write-offs are a great tool for independent adjusters who want to minimize tax liability and maximize the money in their pocket, it is important to understand the basics of tax deductions. Keys to success include understanding what a write-off is, how it affects tax liability and, most importantly, what exactly can be written off.

Self employment tax tips for independent insurance adjusters in their first year. Self employment taxes don't have to be daunting with these tips.

Basically, what you would want to see in your tax forms is how much of it can you tax write offs and save. Anything else is owed to the government.

Being classified as an independent contractor (or a small business enterprise), rather than an employee, has its pros and cons. Having the power to negotiate and charge what you think is fair for your services, deciding what hours you will work, and flexibility of work location are all great features of working as an independent contractor. When it comes time to file your taxes each year, however, the cons rise to the surface and make themselves apparent.

An estimated 13% of the American workforce consists of independent contractors, including many independent adjusters. Being self-employed, and/or working under the protection of a business entity such as a Limited Liability Company (LLC), means that you aren't privy to benefits that W2 employees may have. Retirement planning - including employer contributions and the ability to defer your own pay, tax-free - is one of those major benefits. You'll be happy to know, however, that there are retirement planning opportunities for the self-employed (including independent adjusters) that offer similar - if not superior - opportunities.

Limited Liability Companies ("LLCs") are great vehicles for individuals and groups of people who are interested in protecting their personal assets from business liabilities while keeping their corporate tax return preparations fairly simple. Single Member LLCs ("SMLLCs") - LLCs containing only one individual - are fairly new in the world of business entities. Their use has proven to be quite popular, but their existence has also posed some fundamental legal questions.