Is anyone out there self-employed & if so, how do you do your taxes?

Question

I'm a part-time nanny w/inconsistent hours & income. Usually working less than 20 hours a week.

Answer 1

The first thing you want to do is to check the IRS rules on contractor versus employee. Just because you think you are self-employed doesn't mean that the IRS thinks you are. I don't remember all of the rules, but I think you want to work for more than two entities, have irregular hours and determine your own work hours among other things.

If you are self-employed by IRS standards, then you fill out schedule C. If you are not self-employed by IRS standards, you should probably talk to a tax accountant to minimize the damages that could occur should the IRS audit you.

Another thing you want to so is make sure that you have filed the proper business licenses in your state and city. The city of New York has a self-employment tax which I found out about after several years of self-employment.

Answer 2

I've been self employed since time began. At first I used Accountants to do my taxes. Then I discovered computer software and that is what I use now and love it. If I say the name here, the Yahoo cops will violate me. But it starts with turbo and ends with tax. It is very easy to use and I haven't had a single problem yet. Good Luck.

Answer 3

Fifty is right that the IRS might or might not consider you self-employed, probably not. But in either case, you should be reporting the income and paying taxes on it.

Answer 4

You need to call tax department to find out your tax rate then buy tax stamps each month.

Answer 5

What I do is I use my a accountant as an adivor, you want someone with the right advice and use Quick books

Answer 6

if you are licensed then you have to pay taxes, I pay estimated taxes quarterly, on my business. if you are not licensed, it is like baby sitting and you do not have to report it, however if the people you nanny for claim your expense on their taxes Uncle Sam will come looking for you, to get his.