Post #16 has the five forms you need for your federal income taxes, state income taxes (if you live in Michigan), personal income taxes, and self employment taxes. These includes the forms for making payments and filing your returns. (1040, 1040 Schedule C, MI-1040, 1040-ES, MI-1040ES). If you do not live in Michigan then you will need to find the appropriate forms for your state. I have the appropriate forms with search engines for Alabama, New Jersey and Ohio by putting the ID letters for the state in front of 1040 and 1040ES, try that for your state as a starting place. Check your state's official website if you cannot locate them via search engine.
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I pulled up Publication 334 which is the Tax Guide for small businesses available on the IRS' official website. It's for 2008 but I think most of the concepts are still the same:
http://www.irs.gov/publications/p334/index.html
I'm well aware of the 1040-ES and MI-1040ES (for my state) forms. I was under the impression that those two forms were to be filed every three months (4 quarters total) and that the 1040-ES covered federal income tax and the self employment tax (15.3 of earnings, which is 12.4% social security and 2.9% medicare) and that the MI-1040ES covered state income tax and personal income tax. I've got that part right, don't I?
Melonie introduced me to the 1040 form Schedule C yesterday. Upon further examination of Publication 334 I became a bit bewildered as to 1040 form Schedule C's actual purpose. It is to report income and deductions from a sole proprietorship, which means you are supposed to use it to tell them how much you made and what business expenses you had. This is also where you would claim any dependents. Right so far?
You are also supposed to include a payment voucher with these forms when sending in a quarterly estimated payment, correct?
Okay, next. You attach Schedule C to the 1040-ES form that you send to the IRS for your federal income tax and self employment tax. Do you also attach schedule C to the MI-1040ES form that covers state income tax and personal income tax? As in, you would fill out Schedule C twice, or do you just attach the Schedule C, 1040-ES and MI-1040ES forms altogether? That's where I'm lost.
From Publication 334:
(snip)File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Use Schedule C to figure your net profit or loss from your business. If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule.(snip)
Couldn't you use Schedule C-EZ if you are a dancer and don't use camming or bachelor parties as part of your business? If you strictly went to the club, worked, and came home would you be eligible to use form 1040 Schedule C-EZ?
I'm a bit confused about tax returns when you are self employed. If you are turning the 1040-ES, MI-1040ES (or form applicable to your state), and form 1040 Schedule C on April 15, June 15, Sept. 15, and Jan. 15 for each calendar year then what form(s) are you supposed to use coupled with these forms for your tax return?
I read that you can usually file a federal and state income tax return simultaneously, but that it ultimately depends on your state laws. How do you go about this?
I think I pretty much have the quarterly estimated payments and forms down, I just have some basic questions about those. My biggest problem is the tax returns. The tax return forms for a small business are due April 15th of the next calendar year, correct? (Ex: the 2009 tax return forms are due April 15, 2010). I really just need to know what forms to use.
Thanks in advance.



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