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Fun Fact Friday! Did you know?!

If you’re self-employed, you pay BOTH the employer and employee portions of Social Security and Medicare taxes (called self-employment tax).

But here’s the good news: the IRS lets you deduct the employer-equivalent half of that tax as an above-the-line deduction—meaning it directly reduces your taxable income.

It’s designed to level the playing field with traditional employees, and it’s one of the most overlooked tax breaks for freelancers and small business owners.

Many insurance producers are self-employed, meaning you are the business. This ALSO means you are responsible for both income tax and self-employment (SE) tax, which would normally be split between an employee and employer.

The SE tax rate is 15.3%, applied to 92.35% of your net earnings:

12.4% goes to Social Security
2.9% goes to Medicare

(Social Security applies only up to an annual wage base limit, while Medicare applies to all earnings. High earners may also owe an additional 0.9% Medicare tax above certain income thresholds.)

Experts recommend setting aside 25–30% of your income for taxes and making quarterly estimated payments to Uncle Sam to avoid penalties.

One silver lining? You can deduct the employer-equivalent half of your self-employment tax when calculating your taxable income.

It’s tax season and we’re here to help! Take 15% off your CE courses (which are a tax deductible business expense) now through the end of April with code TAXES

Valid only at InsuranceStudy.com on individual courses. Excludes all memberships and packages. Valid through April 30, 2026.

Fun Fact Friday! Did you know?!

Yes, cat food was written off as a business expense and the IRS allowed it because it was ordinary and necessary for the business. The junkyard cats kept snakes and rodents away protecting the property.

What's the wildest deduction you've seen?

It’s tax season and we’re here to help! Take 15% off your CE courses now through the end of April with code TAXES

*Valid only at InsuranceStudy.com on individual courses. Excludes all memberships and packages. Valid through April 30, 2026.

Running your own business is no small feat and comes with a variety of expenses, many of which the IRS agrees you should be compensated for. What's a business expense that you've taken that may not have made our list?

Fun Fact Friday! Did you know?!

Someone can have a life insurance policy on you and you may not even know it. How is this possible? A policy can be taken out on someone if they have "insurable interest." This includes a spouse, business partner, lender or even your employer. You're priceless, but at least this helps a little bit should something unfortunate happen.

Fun Fact Friday! Did you know?!

Creeper is the first known computer virus discovered in 1971. Unlike modern cyber-attacks, Creeper didn’t steal data or damage files but instead jumped from computer to computer with a message that read, “I’m the creeper, catch me if you can!” The first known antivirus, Reaper, was developed in response to Creeper and was able to locate Creeper on the networks and delete the virus.

Creeper was developed by Bob Thomas at BBN Technologies as a test to see how information could travel between networked computers. This successful test was the gateway to much more advanced, and malicious, viruses to come.

Preparedness today includes digital protection. Cyber exposures continue to evolve as do policy forms.

It's important to know where you stand with cyber coverage:

Social engineering coverage
Ransomware exclusions
Business interruption triggers

CE Reminder: Consider including our Cyber Risks course in your next CE renewal cycle available at InsuranceStudy.com

Be ready for anything, including cyber risks!

Is winter keeping you inside? Take advantage of this time indoors with our extensive course catalog and unlimited Insurance CE, CFP or bundle for unlimited Insurance and CFP courses at InsuranceStudy.com

*Unlimited packages include course fees but do not cover state filing fees.