http://online.wsj.com/article/SB1000...813339356.html "Here are some tips to help the self-employed meet their tax obligations: Pay a visit to IRS.gov. The first step is to download some 1040 ES forms from the IRS. The forms are used four times a year when estimated federal taxes are owed, two weeks after the close of each quarter, on April 15, June 15 and so on. You might as well download IRS publication 583 as well: suggestions on starting a business and keeping records. If your state collects income tax, it likely requires quarterly filings as well. Go to your state tax authority's website for any required forms. Estimate your income. Calculate how much income to set aside. Mr. Hewitt recommends setting aside at least 30% of your income. "Federal, state and self-employment taxes tend to add up to 30% to 40% of income," he says. Estimate your deductions. Separate credit cards, checking accounts, phones and computers help, too, says Jackie Pearlman, a principal tax adviser at H&R Block HRB +0.49%. "The key to this is good record keeping." At the start of each year, add up all of the deductible expenses you know you will have and subtract that from what you estimate your annual income will be. Then divide by four to get your quarterly income estimates. Determine whether you need to make estimated payments. Here's where the 1040 ES forms come in. If you think you will owe the IRS more than $1,000 for the year after withholding and refundable credits, then you will need to make four estimated payments. By law, the payments must be equal in size, according to Ms. Horowitz. Check your state to see what the threshold is for filing estimated payments. Create a special account. Don't delay the inevitable. Create a separate account for the money you will be using to pay your taxes throughout the year. Choose a percentage of your revenue to set aside, and steadily make deposits in the account whenever money arrives. The goal is to segregate the tax money in a bank account or other relatively safe instrument so that you don't spend it or lose it in a risky investment."
Freelancers/Self-Employed Taxes Etc
