Free Employment & Career Articles

Professional Authors - Professional Articles



Employment Tips - How to Avoid Unnecessary Tax Problems When You a Self Employed Person!


When you own your own business, it can be one of the most rewarding things that you can do with your life. Working for yourself without having the boss standing and looking over your shoulder all the time is a dream come true. But, when you are independent and self employed you are going to run into a whole different set of problems, one of the main ones would be learning how to take care of your business taxes in the right manner to avoid getting into hot water with the IRS.

When you own your own business not only are you expected to file the same old same old 1040 for an income but you will also be expected to fill out two additional tax forms. One is called Schedule C which is basically a profit and loss form and then there is the Schedule SE which is basically a self employment tax form. The Schedule C form is a form that allows you to put your business in a category and then allows you to be able to itemize all of your income as well as all of your expenses for the year. The SE form simply helps you figure out the taxes for self employment.

It's a pretty unfair practice since you are being taxed double, but to avoid the IRS being on your back you need to do your best to take care of this. Even if what you are doing is just a hobby, if you happen to earn more than $400 in a year from that hobby, the IRS expects you to pay a self employment tax form.

When you are self employed you need to be able to budget yourself so that you can pay taxes on a quarterly basis. If you don't set up a regular plan to pay quarterly you will discover quickly that the IRS will add penalties for what they consider are late payments. The IRS doesn't care if you work for an employer who pays the self employed taxes or if you are the self employed party, they just want their money, or what they perceive to be their money.

Probably one of the biggest errors that the self employed make is the simple fact that they forget to put aside enough money each month to be able to cover their taxes from the money they have earned each month. You need to have to have a lot of discipline to be able to do this on your own, but to be able to be successful at being self employed you need to learn this kind of discipline. It can be quite tempting to spend all of the money you earn and forget about those taxes that are waiting for you at the end of the quarter. Remember it this way, when you worked for someone else you never were allowed to take all of what you earned home with you, so it unfortunately needs to be the same way when you work for yourself. The best thing you can do is take out a reasonable percentage say at least 25% of your earnings and sock it away for taxes.



Comments
Post has no comments.
Post a Comment




Captcha Image






BLOG TAG CLOUD
resume family life stressful fight discrimination company policies dispute resolution find work big bucks union social security number business bureau be positive staff management tips employer jobsearch taxation issues employment history job description addiction opportunity alcoholic job references taking credit embezzlement paperwork fired upset boss career employment office family agism work area arrogance qualification work hours car payments human resources tips pleasant working environment list handbook improve conditions sandwiches personal freedom recommendation anti-discrimination policies employment background check job seekers work environment confident volunteer work information self-control feel valued your future great job reference friendly update resume work timetable quitting job job advice procedures unemployment benefits dress nice professional references values help can of worms work schedule credit card information job search new skills be prepared feeling better guidelines co-workers job position interview tips employees churches questionnaire giving attention money professional conduct login workplace prospective employer schools manipulation become important job performance friction talk to boss new employee employers personal issues new job job title life changing job application relocation intelligence employment references personal goals scams annoys employee benefits parolees unemployment claim job candidates grammar errors career help interviewers finding a job personal losing your job foot in the door temptations answering questions alcoholism smiling lawyer career change secretive minimum wage staff management personality behavior candlestick patterns GED programs unemployment lines finding employment jobs comfortable sleep healthy dinner job satisfaction soup good references empathy work recommendation stress boss human resources job policies volunteering negotiate good documentation interview tips important cragslist religious holidays career path sexism equal follow instructions different people interview prison training confidence company policy annoying employee angry feelings respect Al-Anon experience interview questions happy worker paid to work new boss character reference employee fellow employees tax money current boss resigning federal jobs AA candidates politeness pay attention income secured server fear prison library ID diplomacy quit contributions job help friends co-worker right person self employed taxes fix problems objectivity job market parole officer complaint job skills honest opinion legitimate company showing respect work schedule change correct information difficult people claims shops look for a job personal time professional levels hackers pink slip environment orientation religious discrimination social security scammers interview preparation screened out boss know vacations drugs refreshed business management unemployment unemployed disabilities potential employer forex trading personal problems family issues salary vacation time drivers licence photo career tips paying attention currency trading recruitment agency investigation resentment employee hours work abilities lazy boss foreign exchange market worries work record negotiable productivity career advice specific directions employment ad company website work load work scheduled changed subordinate personnel department supervisor moving state negotiation lunch mp3 player job hunting angry boss policy issues self employed good employment jobseeker help rent work place getting fired benefits hat job previous employer misconduct interests black marke employment tip job reference emotions cover letter professional job interview lunch break job management sadness pride management tips previous employment own work dissatisfied employee special instructions children knowledge management hobbies local papers.job forex trading strategies job interview earned vacation time job skills work production hate job gossip coping relaxed self employed person problems office gossip maps proper manner website weaknesses nice pants job search.personal credibility strengths being unreasonable police emergency former employers professional fair pay annoying fellow employee work programs nice shirt interview advice passion job discrimination dealing with boss quality time samples of work work force hr deadline co-worker sabotage get the job done job interview tips vending machine feel good career center distrust quit job finances eye contact bad mouth shock former employer eat right housing mortgage research employment advice time off valued employee duties list annoying co-worker employment tips love job lawsuit smile violation schedule state department accommodation enjoying work job seeker attorney getting credit online job application honesty first day flexibility fellow employee decision making spelling errors appeal letter qualifications addiction counseling personal information



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Business Blogs
Business blogs