1.
Before anything else, make sure that you qualify to file income tax in the self-employed bracket.
To be considered self-employed, you should be either of the following: A.
You run a business as a sole proprietor or independent contractor B.
You are a member of a partner running a business C.
You are in business for yourself, including part-time business 2.
If you do qualify to be a self-employed taxpayer, here are the taxes you should be paying A.
Self-Employed Tax Self-employment (SE) tax is the same with Social Security and Medicare Tax.
You are required to pay SE Tax since you have no employer who automatically deducts Social Security Tax from your income.
B.
Income Tax You are required to file income tax if your income from being self-employed amounts to $400 and higher.
Computing for your taxable income involves certain computations and considerations.
You can actually include your health insurance premiums in your deductions, and a whole lot more.
It would be best that you consult Form 1040 instructions or a tax professional to properly determine your income tax.
3.
File your income tax via e-file or Free File If your adjusted gross income (AGI) is $57,000 or less, you can make use of Free File.
If it higher, you can directly use IRS e-file.
Electronic filing is the most convenient and secure way to file your income taxes.
All you have to do is to go online and fill in the fillable forms.
These forms are the same with the paper forms that you use to file income taxes.
4.
Make payments online You will have to file Schedule C or Schedule C-EZ in filing your annual tax return.
As you finish filling out forms, the next thing to do is pay.
The good news is you can also make electronic payments.
Making payments electronically assures you of a timely receipt of payment.
You can opt to pay via Electronic Federal Tax Payment System (EFTPS), electronic funds withdrawal (EFW), or debit/credit card.
Electronic tax filing and payment has made the life of the self-employed easier.
As a busy entrepreneur, you can easily take care of your tax responsibilities at the comforts of your home or store.
Also, if it's your first time e-filing or if you are not that familiar with the system, there are a lot of tax preparers willing to assist you.
What's a few bucks if you can enjoy the ease and convenience of filing taxes, right?
Before anything else, make sure that you qualify to file income tax in the self-employed bracket.
To be considered self-employed, you should be either of the following: A.
You run a business as a sole proprietor or independent contractor B.
You are a member of a partner running a business C.
You are in business for yourself, including part-time business 2.
If you do qualify to be a self-employed taxpayer, here are the taxes you should be paying A.
Self-Employed Tax Self-employment (SE) tax is the same with Social Security and Medicare Tax.
You are required to pay SE Tax since you have no employer who automatically deducts Social Security Tax from your income.
B.
Income Tax You are required to file income tax if your income from being self-employed amounts to $400 and higher.
Computing for your taxable income involves certain computations and considerations.
You can actually include your health insurance premiums in your deductions, and a whole lot more.
It would be best that you consult Form 1040 instructions or a tax professional to properly determine your income tax.
3.
File your income tax via e-file or Free File If your adjusted gross income (AGI) is $57,000 or less, you can make use of Free File.
If it higher, you can directly use IRS e-file.
Electronic filing is the most convenient and secure way to file your income taxes.
All you have to do is to go online and fill in the fillable forms.
These forms are the same with the paper forms that you use to file income taxes.
4.
Make payments online You will have to file Schedule C or Schedule C-EZ in filing your annual tax return.
As you finish filling out forms, the next thing to do is pay.
The good news is you can also make electronic payments.
Making payments electronically assures you of a timely receipt of payment.
You can opt to pay via Electronic Federal Tax Payment System (EFTPS), electronic funds withdrawal (EFW), or debit/credit card.
Electronic tax filing and payment has made the life of the self-employed easier.
As a busy entrepreneur, you can easily take care of your tax responsibilities at the comforts of your home or store.
Also, if it's your first time e-filing or if you are not that familiar with the system, there are a lot of tax preparers willing to assist you.
What's a few bucks if you can enjoy the ease and convenience of filing taxes, right?
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