Briefly:
You file one tax return per year, regardless of the kind of business or amount of income. However, you must make quarterly estimated tax payments based on your income for that quarter. If you over-pay your estimated payments, the difference comes back as your tax refund.
| For income earned |
Estimated payment is due |
| Jan-March |
April 15 |
| April-May |
June 15
|
| June-August |
Sept 15
|
| Sept-Dec |
January 15
|
You would owe income tax on your net income (gross income minus expenses) and also owe 15% self-employment tax. So your tax payment should generally be 27%-37% of your net income after expenses, depending on your other income, dependents, marital status, other deductions, and so on.
Your business will be reported on a schedule C, which reports gross income, expenses, and calculates the net taxable profit. This income flows to your main tax return where it is combined with any other income (wages, prizes, pension, etc.) and your personal deductions and dependents, to determine your final overall tax liability.
