The FIRE Side Hustle Self-Employment Tax Loophole

Episode 72 of The FIRE Podcast with Fexingo dives into a little-known self-employment tax strategy that can save FIRE seekers thousands. Lucas and Luna break down how a side hustle earning $20,000 can actually reduce your overall tax bill by $3,000 through a solo 401(k) contribution, the home office deduction, and the Section 199A pass-through deduction. They walk through real numbers for a freelance graphic designer earning $15,000 annually, showing how the self-employment tax deduction, retirement plan contributions, and business expense deductions combine to turn taxable income into tax savings. The hosts also caution against the 'hobby loss' rule and the AI-powered audit risk. This episode is essential for anyone pursuing financial independence with a side business. #FIRE #FinancialIndependence #SelfEmploymentTax #SideHustle #Solo401k #Section199A #PassThroughDeduction #HomeOfficeDeduction #TaxLoophole #EarlyRetirement #FreelanceTaxTips #SEPIRA #HobbyLossRule #IRS #TaxStrategy #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo