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say i have small service business were i cut people grasss. do i have to pay taxes for doing this?

2007-01-30 03:53:06 · 3 answers · asked by Anonymous in Business & Finance Taxes Other - Taxes

3 answers

Depends on how much you make doing it, and how much you expect to make at it in the coming year. As a small business owner, or private contractor, you'll be filing Schedule C with your federal taxes. After you've subtracted your expenses for everything -mower, gas, protective clothing, transportation of equipment, bookkeeping, etc- what's left is your net profits, and taxable. (Plus you'll have to pay self-employment, another name for Social Security taxes). But don't worry. If that's your only income, you'd have to have at least about $5,000 gross income on your personal 1040, just to offset the standard deduction!
As a small business, IRS will want you to file your projected income for the next year, and either prepay the expected taxes or else pay quarterly. But there's no need to do this if you just say you don't expect to be doing it next year. Why let them have your money before you owe it?

There's also state taxes, depending on which state you live in, and possibly a local business license, though that's not too likely unless you work out of a shop or storefront.

2007-01-30 04:27:26 · answer #1 · answered by BuddyL 5 · 0 0

If you only make a couple hundred dollars a year, then no. But if you do it as a business, then yes you must keep records, and pay tax on your income. If you make more than $400 in a year from self-employment, you are required to file and pay taxes.

2007-01-30 12:26:05 · answer #2 · answered by Judy 7 · 0 0

YES: Especilly if the daily revenue is $25 or more.

2007-01-30 12:24:39 · answer #3 · answered by whatevit 5 · 0 0

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