Tax Guide -- U.S. (IRS)
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These are useful links to common questions sole proprietors in the U.S. might face when filing their 2007 taxes on schedule C. It is my hope that these will help you when you file your taxes.
I cannot emphasize enough the importance of good record keeping and how this makes filing taxes so much easier. Take this from an accountant, simple organization goes a long way to eliminate stress, tax errors, and last minute headaches!
It is my hope that we can use this forum thread as a centralized place to discuss tax issues, post useful links, and gain comfort that we are not the only ones in the world that are confused about the tax laws!
All links are from the IRS website. I prefer going straight to the source of the law concerning taxes.
Am I self employed?
Do I need a tax ID number?
Do I need to file taxes?
What are some of the forms I might need to file?
Why should I keep records?
What kind of records should I keep?
How long do I need to keep these records?
What burden of proof do I have in regards to taxes?
Do I need to pay self employment tax?
An explanation of the different forms:
What type of expenses can I deduct?
Another breakout of forms for sole proprietors:
Download forms and publications:
Tips for your 2008 taxes:
Another reason to keep good records:
New tax laws to consider for your business:
Some tax info if you have employees:
If you are closing your business:
Tutorials to help you learn about taxes:
Here is a good link explaining how to avoid problems filing your taxes:
This is the best link yet. . . how to contact the IRS. I have called the IRS hotline and have always got my questions answered. There are accountants on the line waiting to answer your tax related questions that are specific to your shop. They can recommend you to certain publications that will help clear up confusion you have. You might have to wait on hold awhile, especially as you get closer and closer to tax deadlines. www.irs.gov/help/article/0,,id=96730,00.html
Here is a link to a forum thread where I answered some Etsy shop owner questions concerning taxes:
It might be useful to view the schedule C before you fill it out:
If you click on only one link in this thread. . . click this one. It is the best publication that summarizes every line on schedule C. This is the best summary—I use it all the time: Publication 334
Here is also a link to my blog that I have recently started—it spotlights Etsy sellers, their featured items, and a few insights into how they manage their finances.
I hope this is a good foundation for everyone that is filing taxes this year!
Posted at 6:02 pm Jan 18, 2008 EST