What should I select for my Tax Information?

Individual/Sole proprietor on the W-9 form Request for Taxpayer Identification Number and Certification

After the end of the tax year 2011 in the year 2012 you will have to use the 2011 income tax returns after the IRS releases them at that time to correctly complete your 1040 federal income tax return.

And here you go using the below information should help you get started for your first year as a self employed independent contractor and as you progress and your business starts to grow you may even need some good professional assistance with it for your future.

Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.

You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business

http://www.irs.gov/instructions/i1040sc/%E2%80%A6

Specific Instructions

http://www.irs.gov/instructions/i1040sc/%E2%80%A6

BUT GOOD detailed records are really necessary for your business operation to succeed.

For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.

Use the search box at www.irs.gov for Publications and Forms for the Self-Employed

http://www.irs.gov/businesses/small/arti%E2%80%A6

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

2 of the seven tax tips for starting a business enclosed below.

Go to the IRS gov website and use the search box for the below referenced material

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://www.irs.gov/

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful for your situation and good luck to you. 10/29/2011

sole proprietor, report your income on Sch C, and possibly SE as well, with your 1040

You're an individual.

individual