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.

Post has no comments.
Post a Comment

Captcha Image

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

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

Business Blogs
Business blogs