Self-Employed Taxes

What is the name of your state? TX

I have no clue where to begin. I've been making some money through pay per click search engines and my dad tells me it's time to start figuring out the tax BS so I hit the IRS website but jeez without a PHD that website is useless. I can't understand a word. Only information I decipher from there is that you have to pay more taxes than regular folk. Or so it seems. Anyway, dad also said I would have to pay taxes quarterly, is that true? And how do I go about doing that? I mean what forms do I need to fill out to pay the taxes? When do they have to be sent it? Where do they have to be sent in?

Also, if I read correctly since I'm an "affiliate" of a pay per click search engine working on commision I'm considered an independant contractor. Is that correct?

If there is someone that would be willing to help me out, maybe through email or IM or something that would be great because I'm so incredibly lost right now and I know if I screw up they'll put you in jail or fine you.

please help! thanks in advance

[abezon]

We could try to teach you all about the tax system & how it impacts running a business, but it would take too long. Instead, I'm gonna give you the best free advice I can -- go to your nearest H&R Block & take their basic tax class. It costs about $300 & you can write it off as a business expense or claim a lifetime learning credit. Trust me. It will be worth every penny.

I'm sure it's worth every penny but unfortunately for medical reasons that's not an option. I either have to learn the law, dodge the law, or quit making money. Thanks for your advice though.

[Snipes5]

Yes, you are an Independent Contractor.

You don't have to figure out the tax code to be able to file correctly. If you can read the instructions, obtain a Form 1040, and a Schedule C, and Schedule SE. If this is your only income you MAY need to pay quarterly estimated taxes, but that is not necessarily true.

I suggest you call an H&R Block office. You can ask questions over the phone, usually. Otherwise, pay to get your taxes done professionally the first year, and use that to do them yourself afterwards.

You also might consider investing in one of the myriad computerized tax programs available.

Snipes

Originally Posted by Snipes5

Yes, you are an Independent Contractor.

You don't have to figure out the tax code to be able to file correctly. If you can read the instructions, obtain a Form 1040, and a Schedule C, and Schedule SE. If this is your only income you MAY need to pay quarterly estimated taxes, but that is not necessarily true.

I suggest you call an H&R Block office. You can ask questions over the phone, usually. Otherwise, pay to get your taxes done professionally the first year, and use that to do them yourself afterwards.

You also might consider investing in one of the myriad computerized tax programs available.

Snipes

Thanks, can you recommend a good Tax program?

[abezon]

Unfortunately, tax programs are only as good as the person using them. If you know nothing, a great program won't help you. If you know the tax system, you can do your taxes without a computer & get a better bottom line, simply because you know what is deductible.