Hi,
Happy to help.
I just started working as a consultant for a private company within the last few months. They do not take out taxes. I have zero experience with this. Do I just file my income with my regular taxes? Please explain it to me like I'm 5 years old. I am brand new to this and find regular taxes incredibly stressful already.
It can definitely be overwhelming starting a new venture.
As a contractor, you are considered Self employed. Yes your income and expenses will be included in your individual tax return. TurboTax does a great job of guiding you through your taxes in TurboTax Self Employed https://turbotax.intuit.com/personal-taxes/online/premium/
Here are some great links with videos that are very through in explaining. https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4
With being self employed your income after expenses will be taxed both self employment tax and Ordinary income tax.
You are expected to pay estimated taxes throughout the year. Here is a link to help with that. Since you do not have throughout the year, the irs and state encourage you to pay throughout year. Then you would enter those payments in your individual tax return.
I am glad to continue this conversation. please reply with anymore questions you may Have.
Thanks
Dawn C, EA
