How much should i set aside for taxes?
12000 to 24000 NET profit from your schedule C and the SE of your 1040 income tax return.
Single taxpayer and no dependents age 25.
Your federal taxes are estimated at $4,492.
This is 18.72% of your total income of $24,000. Your total tax payments and refundable credits for the year were $0. Your outstanding tax bill is estimated at $4,492. Your income puts you in the 15.00% tax bracket.
1040 Tax Calculator [Calculator][Definitions]
Enter your filing status, income, deductions and credits and we will estimate your total taxes for 2011. Based on your projected withholdings for the year, we can also estimate your tax refund or amount you may owe the IRS next April 2012. In 2011, Federal income tax rates were scheduled to increase to pre-2001 levels, but the "Tax Hike Prevention Act of 2010" left the existing tax brackets in place through 2012. Please note that this calculator uses the preliminary 2011 tax tables.
Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.
You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business
BUT GOOD detailed records are really necessary for your business operation to succeed.
For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.
Use the search box at www.irs.gov for Publications and Forms for the Self-Employed
All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.
Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business
In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.
You would have to be sure that you handle your business deductions correctly for your business operation.
For instructions and forms go to the IRS.gov website 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 www.irs.gov website 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.
2 of the seven tax tips for starting a business enclosed below.
Go to the IRS gov website and use the search box for the below referenced material
*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)
Hope that you find the above enclosed information useful for your situation and good luck to you. 09/18/2011