Do I Have To Pay A Tax Liability?
If I make anywhere from $400-$700/month?
I am a Sol Proprietors I just started my business, they consider me “Self Employed”
I understand that I will pay self employment tax,regardless (Social security & medicare)
I want to know, what other tax components exist for some one like me?
I’m in the Vending machine business, so (Retail I guess.)
Am I missing something? look below:
Sales tax
Self Employment tax (Social & medicare)
State
Federal
is there anything else that I’m missing?
How can I figure out how much state I owe & How much Federal I owe?
January 1st, 2010 at 6:58 pm
Dear Ken: You will file form Sch C to list your income and your expenses. Sch. SE computes your self employment tax (soc sec and medicare). Sales tax is an issue with you state revenue dept and not with income tax, although you will account for it when calculating your profit from sales. Try H&R Block free calculator to see if you owe or have ar refund. Your state tax will have to be done by visiting your state web site for dept of revenue and pull a form and calculate your tax.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor
January 2nd, 2010 at 1:46 am
This page has instructions and forms you can download. http://www.irs.gov/formspubs/index.html
However, as a new business, I would recommend you have your return prepared by a CPA (and not a big box store–get an independent), as they can get you the maximum deductibles allowed.