Comments on: How is tax determined for Sole Proprietors? http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/ = Search Like A Pro! Mon, 06 Sep 2010 03:20:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: yourtabo http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/comment-page-1/#comment-14664 yourtabo Wed, 10 Mar 2010 07:21:27 +0000 http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/#comment-14664 The IRS taxes you on your net income so $8000. You'll be responsible for 15.3% SE tax so about $1224 on top of any income tax. Your Federal income tax is likely to be $0. But expect at least the $1224 SE tax. The IRS taxes you on your net income so $8000. You’ll be responsible for 15.3% SE tax so about $1224 on top of any income tax. Your Federal income tax is likely to be $0. But expect at least the $1224 SE tax.

]]> By: Big Woof http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/comment-page-1/#comment-14663 Big Woof Wed, 10 Mar 2010 07:03:08 +0000 http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/#comment-14663 I recommend you get a tax professional to assist you. I have been self-employed for over 20 years. The SE tax is what is going to bite you. Your tax bracket is determined by your annual income. I recommend you get a tax professional to assist you. I have been self-employed for over 20 years. The SE tax is what is going to bite you. Your tax bracket is determined by your annual income.

]]> By: JT C http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/comment-page-1/#comment-14662 JT C Wed, 10 Mar 2010 06:57:50 +0000 http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/#comment-14662 You start with the $8k. You'll file a Schedule C and Schedule SE when you do your Form 1040. Go to the IRS website and download copies of these forms and program them into Excel along with your regular ledger and statements so you keep them as you go along through the year. Don't forget that you MUST pay your estimated quarterly taxes on or before the 15th of the month following the end of each quarter using form 1040 ES. You start with the $8k. You’ll file a Schedule C and Schedule SE when you do your Form 1040. Go to the IRS website and download copies of these forms and program them into Excel along with your regular ledger and statements so you keep them as you go along through the year.

Don’t forget that you MUST pay your estimated quarterly taxes on or before the 15th of the month following the end of each quarter using form 1040 ES.

]]> By: Truth B http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/comment-page-1/#comment-14661 Truth B Wed, 10 Mar 2010 06:12:26 +0000 http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/#comment-14661 Check it out. The IRS offers this calculator to help estimate taxes. Check it out. The IRS offers this calculator to help estimate taxes.

]]> By: Judy http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/comment-page-1/#comment-14660 Judy Wed, 10 Mar 2010 05:45:02 +0000 http://www.searchlikeapro.com/how-is-tax-determined-for-sole-proprietors/#comment-14660 You're taxes on your net after expenses for self employment tax. Then your personal exemptions and deductions are subtracted to determine your taxable income for income tax purposes, which determines your bracket. You’re taxes on your net after expenses for self employment tax. Then your personal exemptions and deductions are subtracted to determine your taxable income for income tax purposes, which determines your bracket.

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