AboutCarole Dunton Expertise Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions.
General knowledge of schedule C for small sole proprietorships.
No experience in corporate, estate, partnership or large business returns.
Experience 8 years as tax preparer for major national firm.
Expert: Carole Dunton Date: 7/18/2008 Subject: federal taxes due?
Question Hi, my name's candice and i recently opened a small business in NJ. This is my first quarter filing taxes, and being that i've never done taxes before I m a little confused. Now I just filed my sales tax and use taxes with the state of new jersey and that was simple. But what I am confused about it federal taxes. I am the sole owner/operator of the business and have no employees. My gross income for the second quarter was $1,965. Do I need to pay any quarterly federal taxes or can it all be paid at the end of the year? If I do need to pay them can you tell me what forms I need to find? Any advice will be helpful and appreciated.
Answer Hi,
Assuming that you are a sole proprietor, you will report your business income and expenses on Schedule C. Your net self employment income is subject to self employment tax (social security and medicare). The calculation is net self employment income X .9235 X .153. This is in addition to income tax.
You should make estimated quarterly payments using form 1040ES. You can download and print the forms at the IRS website www.irs.gov. When you go to the site there is a search box in the upper right hand corner. Type 1040ES in that box and then select the first item that comes up. It includes instructions.
