Taxes/Confusion

[WorkingMom227]

This will be the first year that I am filing taxes for being self-employed. I have no idea what to do. For example, I did some work on Textbroker and some work on Merchant Circle along with private clients. Will TB and MC be sending us out tax forms? How does this all work?

[TiffanyB]

If you made more than $600 from a client they should send you a 1099. But even if you don't receive a 1099 because you didn't make more than $600 from that place you still need to claim that income on your taxes.

ETA - I would suggest you go to an accountant or at least some place like HR & Block to get your taxes done this year.

[Buzeus]

Originally Posted by WorkingMom227

This will be the first year that I am filing taxes for being self-employed. I have no idea what to do. For example, I did some work on Textbroker and some work on Merchant Circle along with private clients. Will TB and MC be sending us out tax forms? How does this all work?

I am in the same boat as you. I have W-2 earnings and 1099 earnings, which hopefully will not make it even more complicated. I remember when filing my taxes with just a W-2 that there was a spot to add your 1099 earnings as well, so I hope that is all there is to it. I would love to hear some advice as well.

[WorkingMom227]

Originally Posted by TiffanyB

If you made more than $600 from a client they should send you a 1099. But even if you don't receive a 1099 because you didn't make more than $600 from that place you still need to claim that income on your taxes.

ETA - I would suggest you go to an accountant or at least some place like HR & Block to get your taxes done this year.

My main concern is like.. what do I bring with me if I go to H&R Block? I don't really have proof of the amount of money I have earned. I know Textbroker is supposed to be sending them out at the end of this month but what about MC? I'm not sure.. and how do I report my earnings from the private clients? I don't think I earned more than 600$ from one particular private client in general, mainly a mixture.

[ktjones]

I need major help too, but I don't want to have to pay someone a crap load of money lol

[WorkingMom227]

Originally Posted by Buzeus

I am in the same boat as you. I have W-2 earnings and 1099 earnings, which hopefully will not make it even more complicated. I remember when filing my taxes with just a W-2 that there was a spot to add your 1099 earnings as well, so I hope that is all there is to it. I would love to hear some advice as well.

When you filed before, who did you go through?

[WorkingMom227]

Originally Posted by ktjones

I need major help too, but I don't want to have to pay someone a crap load of money lol

Ditto!! I'm just all concerned about it.

[Jonelle]

For companies that pay via PayPal, you can get reports through that site. (I believe PayPal fees that reduced your income can be deducted as a business expense.) If you had checks, cash, or other forms of payment, just gather all that info.

If you are low income, you might also want to look for free tax help services. I have a friend who is an accountant, and she volunteered one year.

[Sloane Rossi]

Originally Posted by ktjones

I need major help too, but I don't want to have to pay someone a crap load of money lol

I urge you to try TaxCut. It is so so so easy. I know NOTHING about taxes, but they ask you questions and you answer. You don't even see actual tax forms unless you choose to print them for your records when you are done.

When it comes to SE income, there will be a page labeled "Tell us about your 1099-MISC income" and there will be two columns underneath. Once column is labeled "Payer's name" (DMS, MC, TB, etc) and the other is labeled "Amount" (amount you earned) easy easy easy.

They do charge $20 BUT not until you are done and ready to file. So, you can create an account, try it out and if it is not easy enough then you don't have to finish or pay.

[charmed]

You should be able to look on each account you worked for to see how much they paid, if you are ONLY paid through paypal that will make it super easy to see how much you earned and what your expenses are.

In the future I highly suggest using some bookkeeping software or at the very least a spreadsheet, or even a piece of paper that you list income and expenses.

I use outright.com and it works great.

For taxes I use Turbo Tax which I have found to be the most easy solution. Just pick the one for business and it leads you right through the questions but you do need to know what your income and expenses are to use any tax software or an accountant.

Months ago Tax Mama and I were offering a low cost tax info session but no one was interested. Sad because this is very important. You can go to amazon.com and buy tax mama's book too. I review it on my blog.