http://www.etax.com <br />If you’re self-employed, tax time can be confusing. Filing a federal tax return doesn’t have to be difficult, and with a little bit of information, independent contractors and small business owners can easily file returns just like the rest of the taxpaying population. <br />When filing a return, you are required to include a Schedule C, Profit or Loss from Business, with your Form 1040. <br />If you have profited from your business, you may be subject to a self-employment tax, which includes Medicare and Social Security taxes. To determine the amount of the tax you have to pay, fie Schedule SE, Self=Employment Tax, with your regular return. <br />Running your own business can get expensive, but luckily there are some costs that can be deducted. Most expenses can be deducted in full, however some require long-term deduction. This type of deduction is called “depreciation”, and requires you to deduct a percentage of the expense each year, for a specified number of years. <br />Any deductions must be deemed necessary, and can’t be uncommon. The expense must be typical to your industry, and required to help your business run smoothly and efficiently.
