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i have no clue when it comes to pay taxes. i don't want to do it by accountant, my business is simple such as cutting people grass.

"i don't have a license for self-employed" and this is Michigan state.

here is what i know so far, correct me or add things to it:

1st step: open bank account
2nd: use that bank account to buy all necessary tools and keep its reciepts.
3rd: ask customers to send you a check to that bank account? and keep all their check returns.
4th step: keep do all these steps above till 2008 until you file your Schedule SE tax form & schedule C form along with 1040 income form.
5th step . send all reciepts you have saved along with all these tax forms to IRS address?

anything more need to be done?

2007-02-02 07:25:18 · 3 answers · asked by Anonymous in Business & Finance Taxes United States

3 answers

CORRECTION - DO NOT SEND ANY OF YOUR RECEIPTS TO IRS. THESE ARE FOR YOUR RECORDS ONLY. YOU NEED TO HOL D ON TO THEM AS YOU MAY NEED THEM LATER. GOOD LUCK.

ALSO, IF YOU USE THE SAME VEHICLE FOR BUSINESS USE AS YOU DO FOR PERSONAL USE. KEEP A MILEAGE LOG. YOU WILL NEED IT WHEN YOU ARE DOING YOUR TAXES.

2007-02-02 07:59:33 · answer #1 · answered by Birdlegs 5 · 1 0

It's really easier than it sounds.
I was scared the first time I filed as self employed but now it's easy. and you get to deduct so much more than an employee.
Basic rule of thumb is (legally or as close as you can) show as little income as possible to the IRS. You can claim to be making the big bucks to your buddies.
If you do not want to deal with a preparer then by all means pay $20 for a tax software program. I will be worth every penny, I swear.
It will lead you step by step.
I don't know about Michigan law but in my home state we only need a retail license if we collect sales tax.
And on the Fed end, you only need a EIN (employee ID number) if you have employees.
If you get stuck overwhelmed, etc. first call the IRS. They are there to help because screwed up returns just waste their time as much as yours.
If all else fails ask a paid preparer. That way if they screw it up they share some of the liability.
That's why I only do taxes for friends. :o)

2007-02-02 07:39:24 · answer #2 · answered by Kari 4 · 1 0

use 1040 long sort. schedule C - record your earnings. Deduct your costs. (gasoline, maintenance on the mower, etc.) shop on with the type heavily. deliver in regardless of money it tells you which you owe on the top. Or seek for suggestion from a tax preparer to help you.

2016-12-16 19:41:39 · answer #3 · answered by Anonymous · 0 0

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