Posted on Wednesday, 1st July 2009 by admin
Business Directory
I would like to advertise my address and name on my auto detailing business’s business cards, however I don’t want the IRS after me for not claiming money, like what happened to Corleone on the Godfather. What should I do?
I would like to advertise my address and name on my auto detailing business’s business cards, however I don’t want the IRS after me for not claiming money, like what happened to Corleone on the Godfather. What should I do?
Tags: Business Cards, Business Taxes, Taxes Irs
Posted in 1320 | Comments (3)
July 2nd, 2009 at 8:19 am
You report any income you receive and any expenses from the business on Schedule C. You complete Schedule SE and put the numbers on Form 1040.
The IRS requires that all world wide income be reported and on the IRS web site, look at publication 17 for amount you have to earn before you have a filing requirement. However, if you owe Self-Employment tax after you complete Sechedule SE then you have a filing requirement.
You can start a business at age 15, that is not a concern of the IRS. Just that you report and pay any taxes. The IRS requires Self-Employed people to make Quarterly Estimated Tax Deposits. So, if you estimate that you are going to owe $1,000.00 in Self Employment tax at the end of the year, you need to make $250.00 payments each quarter. The publication 17 also will give you the date the payments are to be made by.
July 2nd, 2009 at 7:25 pm
Hide Folders
You should check with your state to see if there are any forms and taxes you need to file with them.
In Michigan you just have to worry about paying income taxes on the income you report to the IRS – unless you make over $350,000 in revenues. Check out your state web site.
And look at the different publications on the IRS web site. If you read their instructions and report your income and expenses every year you won’t get into trouble.
There are also books out there that talk about finances and taxes for small businesses. Read and learn all you can – go to the library – Google the internet.
July 5th, 2009 at 11:38 pm
New York City Job Listings
The IRS doesn’t care how old you are. Anyone who engages in an activity with the intent of generating income is in business to them. Self employment tax is reportable on any income over $400. Your tax return will consist of a 1040, Schedule C (profit or loss from business), Schedule SE (self employment tax). SE tax is the social security and medicare taxes that come out of employees paychecks. When you work for someone you pay half (7.65%) and they match that amount. When you work for youself you pay the entire 15.3%. Make sure you keep track of your expenses, supplies, advertising, etc. as you will write them off on Schedule C. Then you will arrive at net profit – that amount is what the self employment tax is calculated on. You should put aside 25% of all money you make to cover your taxes when you file so keep that in mind when your pricing your jobs.