Getting a Head Start

KayMo — Tue, 08 Jun 2021 03:45:02 GMT

I am a small business owner, so I have a long list of expenses to log for my 2021 tax return. I'd like to get that started ASAP, so I don't have a massive mountain in January. How can I start adding expenses and income to my 2021 tax return? I have looked high and low, but I can't find it.

Re: Getting a Head Start

VolvoGirl — Tue, 08 Jun 2021 03:54:25 GMT

You can't. The 2021 programs don't come out until November and December. You should use a program like Quicken or QuickBooks to track you income and expenses. Or at least use a spreadsheet.

Some general info on self employment...........

You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

Re: Getting a Head Start

Mike9241 — Tue, 08 Jun 2021 04:30:49 GMT

you can even use a spreadsheet to accumulate your expenses. there are apps you pay for like Microsoft Office and free apps like Apache Open Office.

topic Getting a Head Start in Get your taxes done using TurboTax

Getting a Head Start

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