How do you know how much taxes to pay in when you are self employed and where do you send the money?

Answer 1

As a self employed taxpayer you will have to complete your income tax return correctly reporting your gross business income on the schedule C or if you qualify to use it the C-EZ reporting all of your ordinary and necessary expense of your business in order to determine your net profit from the business.

You will need to report that income, and any related expenses, on Form 1040, Schedule C, Profit or Loss from the Business operation, or you may qualify to use Form 1040, Schedule C-EZ, TO determine your Net Profit from the Business operation. You will also need to use the Form 1040, Schedule SE, Self Employment Tax form to compute and report your social security and Medicare tax on the net profit from the business operation.

For instructions and forms go to the IRS gov web site and use the search box for publication 334 a very good place to start with examples

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the IRS gov web site for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

The correct mailing address for your correctly completed 1040 income tax return will be on the last page of the instruction book.

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