Small business taxes / individual taxes?

[BugsNSofie]

I worked for a company for 9 months this year (2010). I recently started my own business. When tax time comes next year will I be filing separate tax forms? 1 from the taxes I paid as an employee and 1 for the taxes I need to pay as a business owner? Or will they somehow be combined?

[Sara_Fz]

Sry dnt know... I juz need points.. :p

[the_tax_lady]

You will file one 1040 with everything on it.

For the business, you will add a schedule C and a schedule SE.

Unless you did something crazy like incorporate or have a partner.
For the first 2 years of business, I would recommend hiring an EA to do your taxes.

[card_ron]

Assuming you are a sole proprietor, you will only file one federal tax return. You will, however, have extra schedules included with that return. You will need to file Schedule C or C-EZ to report self employment income and expenses. Additionally, if your net profit for the year is $400 or more you will need to file Schedule SE to figure self employment tax.

Going forward, if your business is profitable you will probably be required to make quarterly estimated tax payments. Look at Schedule ES for more information.

[hrblockerrolquinn]

Dear Bugs: Probably just one return unless you formed an S Corp or Partnership.

If the new business is just you - you are a Sole Proprietor and will use Sch C for your business income and expenses. If you are profitable you will also have to fill out form Sch SE (self employment tax) which is Social Security and Medicare.

You will add your W2 income to your new business income reported on Sch C and that will be total income subject to taxation. Look on the front page of the 1040 form to see the appropriate lines.

Since this is your first year at this you may very well have a loss in your new business. A free consultation maybe in order to get everything set up correctly.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

[acmeraven]

Go to IRS.GOV and download a free Pub 17 for valuable intel. You will fill out a Sch C for your self employment business; that, plus your W-2 are combined on page one of form 1040, plus all your other pertinent items. You can download bland 1040, Sch C and yada at the IRS site for 2009 for a practice look at the future you are moving into.

[Judy]

You'll file schedule C or C-EZ, and probably schedule SE, with your business info. The info from the two schedules will go on a form 1040, and you'll show your info from your job as an employee on the same 1040.

[Bobbie]

For the federal income tax return if you are a self employed independent contractor one 1040 federal income tax return with the schedule C, SE and all of the other necessary schedules and forms that may be required to correctly complete the federal 1040 income tax return before signing and sending to the correct IRS address.
All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.
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.
The independent contractor self employment income will be reported on the schedule C of the 1040 tax form and you will be responsible for the 15.3% of the social security and medicare tax on your net profit from the business operation you also may need to make some quarterly estimated tax payments for the tax year 2010. The last payment would be January 18 2011.
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.
#4 Good records will help you ensure successful operation of your new business. 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.
#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material
*Starting A Business
*Operating A Business
*Closing A Business
*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://www.irs.gov/

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful good luck

[StephenWeinstein]

You will probably need different pages. However, they may not officially be called "forms". The most common situation is to file a "Form" 1040 showing all the income (personal and business) and a "Schedule" C showing only the business income.

[tro]

no, it will all be included in your 1040, the W-2 wages will be reported on line 7 and your self employment will be reported on Sch C(and the appropriate line on the 1040) as well as your Sch SE, which is self employment tax, approx. 15.3% of your sch C 'net'
half of the se tax is a credit to reduce your gross income