Barber Taxes ,How To File Taxes As A Barber, Step By Step Guide
How to file taxes as a barber
You need to report all your income even if you don’t get a 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. Enter it under…..
The Business Tab – Continue
Choose Explore on my own or I’ll choose what to work on (if it comes up)
Business Income and Expenses
Profit or Loss from Business, click Start or Update
You use your own name and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk. After you put in your income and expenses if your net profit is $400 or more you will pay 15.3% for 2013 Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.
After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% for 2013 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 56. The SE tax is in addition to your regular income tax on the net profit.
we hope this post helped you with filing your taxes this year, If it did make sure to share with your barber family!