But then you can deduct your expenses. Some general info. You will need to keep good records. You may get a 1099Misc 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....
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
Pulication 334, Tax Guide for Small Business
Publication 535 Business Expenses
alos as self employed any health insurance you paid goes to reduce agjusted gross income not to itemized deductions which may be less than the standard deduction. you also have the ability to contribute a large amount to retirement plans.
some plans must be set up before year end others can be set up as late as the extended due date (do not wait until the last minute, holdups which happen often could result in the plans not being in effect until the following year which means no contributions for current year are allowed.
then for certain taxpayers there is the Qualified business income deduction which can be as much as 20% of net business income
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