Can I Really Work from Home and Make Money?
You definitely can make money working by yourself and from your own home or small office. In fact, according to The Wall Street Journal, independent contractors are typically paid 20 to 40 percent more per hour than employees doing the very same job. Why? Because the hiring firms don’t have to pay them additional benefits, including health insurance, sick leave, workers’ compensation, and so on.
The companies also have absolutely no obligation to their outside contractors. It’s no wonder they can afford to pay higher hourly rates. The only drawback to this plan is that if you’re in business for yourself, you need to think seriously about providing yourself with the most important of these benefits, including a good health plan.
The ranks of the self-employed can also come out ahead by taking advantage of various business-related tax deductions. These deductions include necessary expenses related to your work — as long as the expenses are both reasonable and typical for the type of business you’re in. You can even deduct the expenses of running a home office.
Take a look at IRS Publication 587 (Business Use of Your Home), which you can get from the IRS Web site at www.irs.gov. If you’re self-employed, you can also establish your own retirement plan, which can offer significant tax advantages.