While there has been controversy surrounding recent tax legislation, it created what could be a boon for self-employed Boomers. The self-employed, contract workers, and freelancers stand to gain in a number of ways because of the way business deductions have been modified.

Writing for AARP, retirement expert Kerry Hannon does a good job of outlining the key tax benefits that may be available to you if you are self-employed, do contract work, or freelance. As with any such advice, though, everyone's situation is different and it always makes sense to consult a tax professional.

Hannon highlights a number of key areas and discusses them, including:

• The qualified business income deduction: You could be eligible for a tax deduction of 20 percent as a sole proprietor or even if you are part of a partnership, own an LLC, or participate in an S corporation.
• Higher standard deduction: A higher standard deduction may remove the need to itemize personal deductions.
• Home office deduction: You could be eligible for a home office deduction (this existed before the new tax law went into effect).
• New equipment write-off: You can potentially deduct a larger amount for new equipment.
• Business expenses: Hannon writes that these are basically the same with a few new restrictions.
• Medical expenses: The self-employed can deduct medical expenses, but the percentage allowed has actually gone down for 2018 and will go back up in 2019.
• Education and training: Work-related education is deductible with some restrictions.
• Automobile expenses: Mileage driven for business is deductible at a slightly higher per-mile rate in 2018.
• Retirement savings: If you're 50 or older, and you don't have an employer retirement savings plan, you can put up to $6500 into a traditional IRA.

Hannon wisely recommends scrupulous book-keeping if you are self-employed. Read her informative article here: 
https://www.aarp.org/work/small-business/info-2018/freelancers-new-tax-bill.html

With all the red flags being raised about retirement age Boomers saving inadequately and running out of money, it is comforting to read something positive about the frugality of retirees. Richard Eisenberg, Managing Editor of NextAvenue.org, a great resource for Boomers, reports on recent research by the Employee Benefit Research Institute (EBRI) and the Society of Actuaries (SOA).

EBRI looked at three groups of retirees: Those who retired with non-housing assets of $200,000 or less, from $200,000 to $500,000, and $500,000 or more. The third group, with the most assets, spent only about 12 percent of their assets after 19 to 20 years of retirement. The other two groups spent from 24 to 27 percent of assets during the same time period. These percentages suggest that retirees are more frugal than you might think. About one-third of all retirees actually had more assets after 18 years than when they first retired. However, 35 percent of retirees with $200,000 or less to begin with had less than 20 percent of their assets left after 18 years.

An SOA study of retirees over the age of 85 was also encouraging. Although it was limited to focus groups and not a quantitative survey, the study indicated that the majority of these retirees spent less than their income. Two looming concerns may play a large role in why retirees are watching their pennies. A 2017 study by the SOA indicated that more than half of retirees are worried about (1) healthcare costs and (2) long-term care costs. As much as three-quarters of pre-retirees are worried about these two cost factors as well.

While the research suggests positive outcomes for many Boomers, it goes without saying that Boomers thinking about retirement need to financially plan for their futures, ideally with the help of a financial planning advisor.

With the unemployment rate at its lowest point in 18 years, the job market is "sizzling hot," writes career/retirement coach Nancy Collamer. Reporting on a work conference sponsored by Indeed.com, Collamer heard that the job market is tight and talent is hard to find, although wages are generally not going up in keeping with the labor demand.

Still, a robust job market should be good news for Boomers, shouldn't it? Well, yes and no. On the positive side, a Boomer with experience in a field considered desirable by employers may have an easier time than ever securing a part-time or full-time position. On the negative side, there is still plenty of age discrimination, and there is little Boomers can do about it. The fact is employers can interview all they want for an open position, and once they have several candidates available, more often than not they will pick younger over older.

Dust off your resume if you're in a job that you'd like to leave, or if you want to re-enter the workforce. If an employer cannot fill a position and your background and experience are an excellent fit, the market is such that you could be offered a full-time position. Keep in mind, however, that your salary expectations may have to be adjusted. Also, there is always the possibility that you can work part-time or become a contract worker if you don't want a full-time position or, at the very least, you may be able to negotiate flexible hours.

Interestingly, this might be an ideal time to see if your former employer needs help. In an article for The New York Times, Claudia Dreifus profiles several retirees who returned to work years after retiring because their employers had open positions they needed to fill. For example, a 60-year old registered nurse who retired was rehired by a hospital as a freelance nurse for 24 hours per week at a respectable $60 per hour.

A booming job market could be good for some Boomers -- but not for all. That's why it still makes a lot of sense to explore freelance work or self-employment as an option if you want to continue to work.

I'm pleased to say the "Happily Rewired" blog has attracted enough attention that I periodically receive unsolicited input that could be helpful to my readers. Here are two such resources that I think you will find of interest:

1. A Senior's Guide to Healthy Eating
   The website "Nifty Benefits" has put together a helpful infographic. According to the creator Brenda Snow, "My goal with this guide is to help seniors live a fulfilling life, starting with a foundation of good nutrition. From the limitations that can cause seniors to have poor nutrition, to easy tips to incorporate healthy foods into your lifestyle or the lifestyle of your loved one, this guide has a lot of information that I hope will be valuable to you." The informative guide covers observing good basics and special considerations for older adults.
   Find it here: https://niftybenefits.com/seniors-guide-healthy-eating/
2. The Senior Citizen's Guide to Moving
   The website "Hire a Helper" has created a comprehensive free guide to moving. The six helpful chapters are:
   - Popular moving options for seniors
   - Planning out your new home
   - How to downsize
   - The emotional impact of downsizing
   - Moving tips for senior citizens
   - Staying connected in a new city.
   Find it here: https://blog.hireahelper.com/senior-citizens-moving/

If you've ever thought about going into business with your spouse, you need to read Let's Make Money, Honey: The Couple's Guide to Starting a Service Business. The book has received excellent reviews from book reviewers and readers alike. It tells the story of how a Boomer couple started a small service business and sold it seven years later. You'll find plenty of advice about what to do and what not to do when starting a business with your spouse. Included are details about planning, financing, outfitting, and launching a service business, as well as operations, marketing, sales, customer service, and managing growth. Useful tools to help couples assess their business interests and business compatibility are also included. 

For the month of July only, Happily Rewired is offering the eBook edition of Let's Make Money, Honey: The Couple's Guide to Starting a Service Business at half price -- just $3.50 -- if you order it through Smashwords. You can get the book in any format for any device, including a PDF. 

To get your copy at half-price, simply go to: https://www.smashwords.com/books/view/568837  When you place your order, enter the code SSW50 and you'll pay just $3.50 instead of the regular price of $6.99. This offer is only good from July 1 through 31 at Smashwords so order today!