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



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

Business Blogs
Business blogs