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If you want to win the game, you gotta learn winning strategies.
And most young adults barely know how to play the game at all.
But that means they often miss out on tax savings they qualify for especially tax credits.
Except you knew there was a but coming.
If you earned income in cryptocurrency, you owe taxes on it.
If you mined coins or sold NFTs or staked ethereum to earn rewards, you owe taxes.
Some self-employed workers opt not to, since theres no paper trail without a 1099.
But they do so at their own risk.
Unfortunately, self-employed workers owe both the employee and employer sides of Medicare and Social Security taxes.
That comes to 15.3% total, double the 7.65% rate that W-2 employees pay.
They pay you everything up front, and it falls to you to budget and pay those taxes.
Actually, its worse than that.
Self-employed workers owe estimated taxes each quarter, throughout the tax year.
That includes travel, a home office, meals, office supplies and more.
These workers can deduct these from their business income directly, while still taking the standard deduction.
As insurance denial rates soar, this issue is becoming more widespread.
Plus, as a young adult, your Roth account has decades to compound tax-free before you retire.
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