Tax day!

Being self-employed can be a great thing. I set my own hours, I work for myself, and I have the freedom to run my business how I see fit. It also has its negative side though. Taxes for one are twice as complicated, as if they weren't already confusing. Instead of filing a single annual individual return at H&R Block, I now have a professional accountant who helps me file quaterly and annual taxes for my S Corporation.
Being self-employed can also make obtaining a mortgage very challenging. Many self-employed people that come to me make a lot more money than their tax returns actually reflect. This is because they take advantgage of a lot of write-offs. In the past self employed borrowers could just do a "stated-income" loan where the lender didn't verify income with tax returns. Well, we all know what happened with stated-income loans. With those types of loans being a thing of the past, it may behoove self-employed borrowers who are contemplating a refinance or purchase of a home, to reflect a little bit more income than they use to on those tax returns. Because it doesn't look like "stated-income" is coming back anytime soon.