The income you receive from consulting is considered normal income. This means that you'll add it to any other income you earned during the year and then pay taxes on that amount at your marginal tax rate. The marginal tax rate you pay at is based on what you earned. Consultants are likely to have deductible business expenses that can help you save a lot on your taxes.
A checklist can help you account for all the deductions you are entitled to use. These are the main tax deductions for consultants. Professional services are not taxable in Florida unless a physical product is manufactured.
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