In Michigan, it isn't normal for ordinary citizens like you to end up in tax court. The number one reason you might? Getting your assets, including potential tax refunds, tied up inside of the messy business that is divorce.
As an independent contractor, you have the freedom to access your finances and allocate them however you choose. Since federal taxes, state taxes, Medicare and Social Security funds are not taken out of your paycheck, you have more flexibility to play around with your finances up front. Yet when tax time comes around, it is important that you are not left struggling to come up with the money necessary to pay back the state and federal government. Organizing your finances as a self-employed contractor is vital, and can make all of the difference when annual tax time arrives.