I have absolutely no idea what to do when tax time comes around next year. I just started a new job with an at home Receptionist/Telemarketing position that is an independent contractor type position. I need to know what documents, receipts, and forms that I need to keep/get for next years tax returns. Also I was wondering what I can write off as a deduction. I bought a brand new laptop, I had to get unlimited long distance, and also I had to get DSL. All for this position. How much will I have to pay back at the end of the year, will I have to pay state and federal? What forms will I need for next year and where can I get them? Thank you so much for your help :) I know this is a rough time of the year.

Jodi

Jodi:

As an independent contractor, you are responsible for making quarterly estimated taxes to pay your income taxes and the self-employment taxes. This is done using Form 1040-ES. There is also a state equivalent form.

You also need to keep track of your operating expenses. Also, get a daytimer and keep track of your business mileage.

Put about one-third of your gross income ina separate bank account to pay the taxes. Contact a local tax pro to help you calculate the taxes and file the quarterly tax. The first deadline is April 15.