Hi @Gardenia1
Great questions! Let me try and provide some insight.
- Yes, the IRS requests that we "Pay as We Go" . If you will net more than $400 of self employment income, you should make at least quarterly tax payments.
- You can make and track your estimated payments on the IRS website. Create an account for the best information IRS Payments There are other good reasons to create an IRS account such as tracking your tax return filing and refund status. I would recommend starting now!
- If reimbursements for expenses are included in your Form 1099 NEC as non-employee compensation (Box 1) you can deduct them as expenses on your Schedule C in your year end tax return.
- If the expenses are not reimbursed you can still include them on your Schedule C if they are business related. In fact, it is expected that you will likely have business related expenses that are not reimbursed. These could be such items as mileage, advertising, office supplies, home office, business use of cell phone and many others. TurboTax does a great job of setting up your Schedule C and walking you through the various expense categories.
- You can deduct 50% of your business meals. Keep your receipts. Tax Deductions for Business Travelers
- Everyone's situation and preference is different! There are pros and cons to being self employed versus an employee. Many people enjoy the freedom of being their own boss!
Thank you!
Melanie
