Hello everyone!I just want to start off by saying that you girls (and guys) have inspired me in so many ways. I cannot believe how many intelligent women there are working in the entertainment industry, it really warms my heart.
Anyway, I'll admit I was a bit confused about paying taxes as an Independent Contractor because I've always filled out a W2 and been fine. I did some hunting and I found a great, informative article that was authored by an attorney concerning 1040-ES forms (estimated taxes). So for anyone else who is contemplating getting into the business, here's a great link that is very informative about estimated taxes:
http://www.incorporatorpro.com/legal...cle-30084.html
I also went on the IRS' official website (www.IRS.gov) and there were several helpful links about being self employed. The biggest complaint I had with their website is that it's written in legal mumbo-jumbo and because I haven't taken a lot of courses in economics, I don't understand it all. If you want to access information you know hasn't been misinterpreted, I'd think their website would be the place to go!
Here are various questions I have, feel free to answer all or a few of them!:
Now, correct me if I'm wrong, but the 1040-ES taxes cover income taxes (state and federal) and self-employment taxes (Social Security and medicare). Because of this you are not responsible for paying any other taxes at any point, correct?
The most confusing part of all of this for me:
When you are tracking business expenses (hair care products, make up, outfits, etc) you are supposed to make deductions quarterly? As in, for the first quarter (January 1 - March 31) if you had $1,256.75 in business expenses, you would deduct that from your April 15th payment, right? (Example: If you owed the IRS $4,647.23 for that quarter, you would subtract the $1,256.75 of business expenses and pay them $3390.48 for the quarter).
When do you get your tax return? Since you're paying quarterly is it just a lump sum like everyone else's when the time comes? Or is there a different procedure?
How/when do you claim other deductions with the 1040-ES forms? (Such as having a child).
Non-tax related question:
If you are self-employed and are considering applying for financing a vehicle or leasing an apartment, there are usually yearly income requirements. Do you have to wait an entire year for your tax return to prove your income? Or is there another way? (1040-ES forms)?
Lastly, I live near Detroit, MI. I'm sure there are at least a few dancers on SW from around here. Has anyone hired a tax accountant from this area? What kind of cost are you looking at when hiring someone, and is it worth the trouble? (Input from other people in other areas of the U.S. would be helpful!)
Thanks so much! I hope the top part of this post helped some other confused people, appreciate all of the help!
-Laurisa



I just want to start off by saying that you girls (and guys) have inspired me in so many ways. I cannot believe how many intelligent women there are working in the entertainment industry, it really warms my heart.
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I am unsure of which approach I will choose as of now.

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