Salem asked:
Please explain to me how to begin the process of filing taxes as a self employed person. I know I have to fill out the 1040ES form but thats it. I’m not even sure how to fill it out. How do I know what my monthly or quarterly payments should be? When should I start making payments?
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go here all the info you need to help you out
Make an appt, and get into see a Tax accountant. They will help you take care of everything. One thing is for sure, you do not want to make any mistakes regarding taxes when you are self employed. Whether you are dealing with Sales tax or income tax, they have to be right or your in trouble.
As far as payments go, the account will tell you if you need to do this or not. Not everyone does. It depends on a lot of factors.
So dont mess around, make an appt today. you will be happy you did
For your quarterly payments (you don’t do them monthly), you guess what your income will be for the year, or just calculate what your income was for that quarter, then figure out what your tax would be for the year if you continue to make that amount, and send in 1/4 of the amount each quarter. Don’t forget the self-employment tax for social security and medicare - it will come to around 14% of your net income.
The first payment for 2007 was due in April, the second in June, the third in September. The last one is due on January 15 of 2008 - if you haven’t made any payments so far, be sure to pay in all that you expect to owe on this last quarterly due date. The 1040ES form that you actually send in is very easy, and the worksheet should help you find how much to send - see
When you file next February-April 15, you will use Schedule C or C-EZ, and Schedule SE.
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