Because of the additional tax burden on the self-employed, aim to increase your income by $250.
- How would you feel about earning money from one of your hobbies? If you enjoy photography and have proven yourself to be more skilled than the thousands of kids who use their mobile phones as cameras, use automated effects filters, and share their “art” on Facebook, consider doing a family portrait session each month.
- In the frenetic race to create ever-increasing content online, writers are in demand. Consider offering your skills as a freelance writer for one of a vast number of websites willing to hire good copywriters.
- If you are not legally restricted, take what you do for a living and offer it to others for a fee. If you're an in-house accountant, offer to handle your friends' tax returns. That's seasonal work, but it could provide enough self-employment income to cover the payroll tax increase for the entire year. If you do office work, find an opportunity to freelance data entry.
I've seen that those who begin to focus more on earning income by taking the initiative to make themselves available for freelance or consultant work based on their skills and passions start to see more opportunities. This is more than just earning an additional $250 each month. This could open doors to shaping an entirely new life in terms of income opportunities.
The elimination of the payroll tax cut is just one of those realities, a large-scale economic shift that everyone needs to deal with on an individual basis. We'd like to think we can keep all taxes low forever, but the society in which we would like to live requires funding. Low tax rates won't remain, and in this case, the payroll tax cut was implemented as temporary from the start, like the Bush-era income tax cuts.