if i decide to clean swimming pools for a living how to i file taxes on money people give me?
mathesfamily13 asked:
i was thinking of cleaning swimming pools for people but how do i do everything by the book on filing taxes paying taxes, it would only be me and one other person.
Shamus
i was thinking of cleaning swimming pools for people but how do i do everything by the book on filing taxes paying taxes, it would only be me and one other person.
Shamus
September 21st, 2008 at 3:55 am
If you are going to have an employee, you should consult a CPA to help you set-up and run your business properly. You can start out as a sole-proprietor (schedule c) business, but if you get to making a certain amount, you might want to incorporate.
Either way, you will probably want the CPA especially if you have payroll because it’s a pain in the **** to fill out all those forms — stick to cleaning pools and leave the paperwork to the professional!
September 21st, 2008 at 4:50 am
Pretty simple really. You keep good records. Invoice your customers and keep copies. Keep records of all expenses. Keep records of all payments by customers. At the end of the year you will file Schedule C for self employment. maybe schedule D if you have depreciation on equipment.
You will have to pay both parts of social security( 15.2% I think ) After figureing your actual profit you just file 1040 for Federal income tax.
September 22nd, 2008 at 8:34 pm
I just go to an accountant and explain my business to her and I file jointly with my wife. Or you can set up a business type such as Sole Proprietor, or partnership, or Limite liability Corportation. An Accountant can do all that for you. Find and talk with an accountant.
September 25th, 2008 at 7:20 pm
Keep accurate records of all of your business income and expenses. File Schedule C with your Form 1040 tax return to account for the income and expenses. File Schedule SE to calculate the self-employment taxes.
If you expect to owe more than $1,000 in Federal taxes on this venture you are required to make quarterly estimated tax payments using Form 1040-ES. If your state levies an income tax you’ll probably have to make estimtaed payments to your state as well.