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Go to www.irs.gov and use the search box for Self-Employed Individuals Tax Center

Record keeping

What kinds of records should I keep?

You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

Publication 583 , Starting a Business and Keeping Records

Supporting Business Documents

Purchases, sales, payroll, and other transactions you have in your business will generate supporting documents such as invoices and receipts. Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return. You should keep them in an orderly fashion and in a safe place. For instance, organize them by year and type of income or expense. For more detailed information go to www.irs.gov and use the search box and type Publication 583, Starting a Business and Keeping Records.

http://www.irs.gov/publications/p583/index.html

The following are some of the types of records you should keep:

*.Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following:

*. Cash register tapes

*. Bank deposit slips

*. Receipt books

*. Invoices

*. Credit card charge slips

*. Forms 1099-MISC

And more information is available below

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Related Questions

What age are you exempt from filing Income Tax?

You are not exempt from filing for Income taxes based on age. You are exempt from filing taxes based on the income you receive. If your income is over a certain amount you must file.


What are the differences between filing a W-4 as married filing jointly versus filing as single?

When filing a W-4 as married filing jointly, both spouses combine their income and deductions on one tax return. This can result in a lower tax rate and higher deductions. When filing as single, only one person's income and deductions are considered, which may result in a higher tax rate and lower deductions.


Do you have to claim inheritance as income when filing your taxes?

In general, inheritance is not considered taxable income for federal tax purposes. However, any income earned from inherited assets, such as interest or dividends, may be subject to income tax. It's important to consult with a tax professional for specific guidance on how to handle inheritance when filing your taxes.


Does income count AFTER you file chapter 7?

A person's income does not count after filing chapter 7 bankruptcy. All that counts is what you had before filing bankruptcy.


Is any of this considered earned income if you and your wife live on social security income and a small pension benefit but no labor is performed?

No. Social Security and Pension income are not considered earned income for the purposed of the Earned Income Tax Credit. This is not to say that you will not have to file an income tax return and possibly pay taxes. Depending on the amount of income you have and your filing status, you may or may not have to file a return.


Can a sole proprietor use his business income as his personal income on a schedule c when filing his taxes?

Yes, a sole proprietor can report business income as personal income on Schedule C when filing taxes. The income generated by the business is considered personal income for tax purposes, as there is no legal distinction between the owner and the business entity. This means that all profits and losses from the business are reported on the owner's individual tax return.


When filing for the federal income tax return do you have to attach schedule a for the state income tax return?

No, when filing for the federal income tax return, you do not attach the Schedule A for the state income tax return.


What form do you file when filing for the state income tax return?

When you are filing for the state income tax return, you will fill form 1040.


What are the differences between filing taxes as married filing jointly on a W4 form versus filing as single?

When filing taxes as married filing jointly on a W-4 form, both spouses combine their income and deductions on one tax return. This can result in lower tax rates and higher deductions. When filing as single on a W-4 form, only one person's income and deductions are considered, which may result in higher tax rates and lower deductions.


How much income do you have to earn before you file income tax 2012?

How much income you have to earn before filing a 2012 Income Tax Return is determined by your filing status as Single, Married Filing Joint, Married filing Separate, Head of Household or qualifying widower. Based on your filing status and age if at the end of 2012 you are under 65 or 65 or older, file a return if your gross income was at least $3800 to $19,500.


When filing for the state income taxes do you receive your federal income tax refund as well as your state income tax refund?

No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.


what form do I use for file state income tax for single ?

what short form do I use for filing state income tax for filing single

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