Newbie who wants to start off right! - Help Me please
I just started dancing in February, so I'm not going to be filing taxes for this year, but I want to make sure I'm doing everything right so 2009 - 2010 isn't a nightmare.
I've been saving my receipts, and I looked at britneyireland's list of possible deductions to keep in mind what other expenses I can write-off. What other things should I be keeping an eye on now before they get out of hand?
britneyireland also mentioned getting receipts for tip-out and house fees. How do I go about getting a receipt? What is my club tells me I don't need one or they don't issue recipts?
I'm sorry for being a total noob loser, but I just want to make sure I get this right and that I'm as responsible with my money as possible
Re: Newbie who wants to start off right! - Help Me please
1. Open a separate checking account for your dancing business. (You can open it as a personal account using your SSN, or get a TPIN, at this stage it doesn't matter much.) Put every penny you take home from the club in the dancing account.
2. Get a good accounting system, one where you record income and expenses. This can be as simple as an accounting notebook you buy at an office store, or something more sophisticated like Quicken (tm).
3. Pay your business expenses, including yourself, out of the business checking account.
4. You will have to file estimates if you will owe more than $1,000 in federal taxes for 2009. There is a thread on the ways and means of doing that. Quicken (tm) will help you do that, and help you get your books ready to file your 2009 tax return.
Don't worry if your club won't give you a reciept for tipouts. Remember, you are depositing into the separate business account. The IRS will accept that rather than fight over tip outs. (Why, because the that's what the law says, and they love records.) Remember, you are a cash basis taxpayer.
HTH
Z
Re: Newbie who wants to start off right! - Help Me please
Also, as a business, or independent contractor, you are technically supposed to file your taxes every quarter. When you do this, more than likely for your federal, at least they can put you on a payment plan instead of a lump sum payment. If you are not familiar with accounting practices, I highly suggest enlisting the services of one. The monthly fee is quite nominal so long as you keep good records.
Good luck!
Re: Newbie who wants to start off right! - Help Me please
Thanks for the tips! Not only is this confusing for me because its the first time I've filed as a private contractor, but its the first time I've filed EVER -
so...if I need to file every quarter, how do I know when to file?
Re: Newbie who wants to start off right! - Help Me please
This is great to know. I'm glad this thread was started and is getting such informative responses, because I need to figure out taxes, too.
Re: Newbie who wants to start off right! - Help Me please
Quote:
Originally Posted by
Winged Dinghy
This is great to know. I'm glad this thread was started and is getting such informative responses, because I need to figure out taxes, too.
Here is a link to the instructions for your quarterly return: http://www.irs.gov/pub/irs-pdf/f1040es.pdf
If you think you will owe $1000 in taxes, you will need to complete this return every quarter, it is due on April 15, 2009, June 15, 2009, September 15, 2009 and January 15, 2010 for tax year 2009. The same is true for your home state as well as any state you might dance in. (Assuming those states have income taxes.)
If you do not form a LLC or subchapter S corporation, you will need to report your business income and expenses on schedule C. Here is a copy of schedule C: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
HTH
Z