I Just Started a Side Business, What Do I Need to Prepare for Tax Season?

[Xjentryn]

At the beginning of this year I published my first novel on Amazon. It has barely sold any copies (less than 100), but it has sold. I intend to keep writing more books and eventually get many more sales (to the point of one day potentially being self employed). What steps should I be taking to prepare for tax season? How will this affect my taxes now as opposed to later? At what threshold (of sales/income) will this likely have a significant effect on my taxes? And how do I best set myself up so that when Tax Season comes around I don't suddenly owe a bunch of money?

Do book expenses, such as editors, qualify as work expenses, and if so how do I factor those into my taxes?

Thanks! Really appreciate this event!

[Jackstar221]

Hi! Thank you for your question.

Here is an article regarding IRS estimated taxes  

You can use the IRS tax withholding estimator to estimate how much you may owe.

The threshold for SS tax is $400.  The threshold for issuing a 1099-NEC is $600.

If you paid editors, you can deduct the expenses you paid to editors, which may reduce your taxable income.

You can pay estimated taxes through EFTPS.

This link may also be helpful in paying your estimates taxes 1040-V