Here is my dilemna. I have been using this forum's Buy Sell Trade to get writing jobs. Now, I figure since I am making decent money from them, I need to file taxes next April. What do I do? I won't recieve W-2 forms because they are from many many different people. I have a spreadsheet with names, what I did, payment, and date. What else do I need? If I am under 18, does that change anything?
First of all, congratulations on being smarter than most of the population by recording everything. Down to business, anyone who did work for you will be called a contract laborer. NEVER use the word employee as there are a lot of extra costs associated with this, even when you have people working for you (ex: an affiliate manager working for your network). On top of that, you're going to have to record any other expenses you incur from running your business... this can get quite liberal ranging from a mileage log for your car (and get about 50c/mi in tax deduction!), paper, internet connection, "business" meals (50% deduction), cell phone bills, etc. You need to be able to justify it as "primarily used for the business" Also, you should try and get a w-9 from all the people who you paid so that you can 1099 them later... Taxes are much easier for self employed people if you make estimated payments. There can be fines involved if you don't make estimated payments (as you are obligated to if you make over a certain $ amount) At the end of the year, you're going to have to figure out all your revenue, profits/losses, and costs by the end of January. 1099's are required to be mailed out by January 31st to allow the people you send them to enough time to prepare for their own taxes. Also, make sure to try and save at least 15-25% of your estimated profit as you will owe that in taxes... if you can't pay you will be f***** by the IRS. I would HIGHLY recommend something like TurboTax for your first time doing a tax return as it introduces you to the concepts very well and H&R Block won't teach you anything about taxes but just give you the answers Being under 18 won't be a problem but you should try to convince your parents to let you file as an independent. I'm pretty sure you still can as a minor and it could save you a few thousand dollars! Its worth attempting I guess That's about the gist of it all that you'll have to worry about... any questions on the above? It would help knowing what exact industry you were in as well. Cheers!