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Tax Deduction Consulting: Self Employed Taxes Bennington VT

Self employed people form a huge percentage of the economy in the United States. Unfortunately, this means self employed taxes are a popular subject with the IRS and state tax agencies. For more detailed information please read on the following article.

H&R Block
(802) 442-3100
222 NORTH ST
BENNINGTON, VT

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Associates In Accounting
(802) 878-9619
6 Pinecrest Dr
Essex Junction, VT
 
Liberty Tax Service
(866) 871-1040
1197 Williston Rd
South Burlington, VT

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Lachance Susan CPA PC
(802) 878-7677
45 Logwood Cir
Essex Junction, VT
 
Danaher Attig & Plante PLC
(802) 383-0399
150 Kennedy Drive
South Burlington, VT
 
H&R Block
(518) 677-3466
14 S PARK ST
CAMBRIDGE, NY

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Jacob Philip H Tax And Business Services
(802) 862-8889
12 Perrotta Pl
Burlington, VT
 
H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

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Misasi & Misasi PC
(802) 388-6307
11 Ct St
Middlebury, VT

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H&R Block Inside St Albans Commons
(802) 524-3140
178 SWANTON RD
SAINT ALBANS, VT

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Tax Deduction Consulting: Self Employed Taxes

Self Employed Taxes

Self employed people form a huge percentage of the economy in the United States. Unfortunately, this means self employed taxes are a popular subject with the IRS and state tax agencies.

As a self employed person, the IRS views your business as a pass through entity. A pass through entity is simply one in which all business finances are recorded on your personal tax return. In essence, the taxes related to the business pass through to your personal runs, hence the name.

Typically, you are going to report all business income, deductions, credits and so forth on Schedule C of form 1040. "Profits or Losses from Business" is the title of the Schedule and you will fill it out and file it in congruence with your person taxes on the 1040 tax form.

With your self employed taxes, the profit of your business activities is the magic number from which taxes are determined. Typically, the profit for the business activities will be gross revenues minus tax deductions and credits. Allowable deductions vary from business to business, but generally are those incurred in the pursuit of a profit. Such deductions can include marketing costs, business auto expenses, banking fees, business credit card interest, business cell phone usage and so on.

Estimated taxes are a particular downside to being a self employed business person. The IRS isn't willing to wait to the end of the year to collect your business taxes. Instead, the agency wants to money as soon as it can get it, a process better known as paying estimated taxes. To pay estimated taxes, you need to guesstimate your yearly profit and send in one quarter of the taxes due on that amount each quarter of the year. Don't worry about forgetting to do it. The IRS will send you coupons and forms to make sure the money comes in!

Perhaps the worst tax issue with being self employed is the much hated self-employment tax. A person receiving a salary from a company is use to seeing money deducted for FICA, M...

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