Business Tax Recovery Logo


Tax Deduction Consulting: Self Employed Taxes Mitchell SD

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.

Mr. Todd M. Klein (RFC®), CFP
(605) 348-2433
1241 E St. Joseph St
Rapid City, SD
Company
Fintegra, LLC
Qualifications
Years of Experience: 19
Membership
IARFC
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Education Plan

Data Provided by:
Liberty Tax Service
(866) 871-1040
633 E Sioux Ave # 6
Pierre, SD

Data Provided by:
H&R Block
(605) 332-8081
4601 E ARROWHEAD PKWY STE 101
SIOUX FALLS, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
532 E Anamosa St
Rapid City, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1943 Dakota Ave S
Huron, SD

Data Provided by:
H&R Block Inside Sears At Rushmore Mall
(605) 399-2114
2200 N MAPLE AVESW Suite 8
RAPID CITY, SD

Data Provided by:
H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

Data Provided by:
Carlon & Millar Prof Llc
(605) 996-6850
201 E 4th Ave
Mitchell, SD
 
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com