What do I do? (Tax-Related)?

Question

I'm about to start making some extra income as a guide on ChaCha.com. I'll have to deduct taxes myself though, which is something I know nothing about. What exactly do I have to do? What exactly am I responsible for? I know I'll be receiving a 1099 for Federal, but I'm clueless about the rest. I would appreciate any help.

Answer 1

You'll have to pay income taxes on what you make, and also self-employment taxes which will be 15.3% - if you have business-related expenses, you subtract those from what you make before you figure your self-employment tax.

You'll be filing quarterly estimated returns on form 1040ES, and pay taxes quarterly for what you made that quarter.