Sole Proprietorship

Forum|Forum|2 years ago
October 25, 2023
1 reply
12 views

I am looking to start a sole proprietorship to take on some additional income. What are some tax considerations (deductions, quarterly payment of taxes, etc) I should take?

Ask the Experts - Extension - Sept 2023

AmitaR

Employee Tax & Finance Expert

Hello rafmarino,

Thanks for joining us today!

Your additional income will be subject to regular tax as well as self-employment tax. You can either make the Quarterly estimated tax payments or update your W4 (in case you have a regular W2 income), and increase your withholding from the W2 income.

Useful links below for more info:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/business-tax-credits-deductions/starting-business-affect-taxes/L0KMkvR7k_US_en_US

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

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