how can i report to the IRS the income earned from selling T shirts with designs on them that i have printed?

Question

Im Trying to start a business selling t shirts with designs printed on them that i think of .

Answer 1

File Schedule C or C-EZ with your tax return. You'll account for your income and business expenses there. The total profit goes to Form 1040 where you figure the income tax and also to Schedule SE to figure the Self-Employment taxes. You have to pay Self-Employment taxes if you have more than $400 in profit from Self-Employment in any tax year. The Self-Employment tax is levied at 15.3% of 92.35% of the net profit from the business.

If you start making a lot of money with this you'll need to start making quarterly estimated payments to the IRS using Form 1040-ES. You can download the package on the IRS website and use the worksheets to estimate your income and the amount of the taxes due.