Income tax question...small business???

Question

I've been laid off from my job for most of the year. Now that I'm running out of time, and no new opportunities in my field, I've decided to take on the task of doing some freelance-type yard cleanup on my own. I'm planning on building a website for my services, leaving door to door flyers, and advertising in classified ads in the local news paper.

My question is, how would I file this income? Is it small business? Other than what I mentioned above, my only expense will be fuel. I'm not really sure what I need to do about taxes. Any advice or resources you can point to would be greatly appreciated.

If things go well, I might switch to this line of work and leave the cubicle in the past.

Answer 1

You'll fill out a schedule C or C-EZ showing your 1099 income and any associated deductible expenses, a schedule SE to calculate your self-employment tax, and a form 1040 to calculate your total tax.  If you have other income, like from a job for part of the year, that goes on the same 1040 form.

Good luck

Answer 2

You take all the money earned and subtract your expenses and you report it with Schedule C. Your only expense is not fuel. Website costs, paper for flyers, flyer printing, telephone for talking to clients (maybe get a cell phone just for business no personal), clean up supplies like garbage bags, rakes, other tools, business license, etc. Later on a professional tax preparer, accountant, employees

Answer 3

Read more about self employed tax filing: http://taxipay.blogspot.com/2008/04/tax-...