"ed" <ed[at]edcosoft.com> wrote:
- quote -

Questions and answers in the manner you describe are not
given on the IRS website....

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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"CLJ1219" <clj1219[at]aol.comnb090602> wrote:

- quote -

Based on some of the representation work I've gotten in the
past year, I am not sure about that!

Gene E. Utterback, EA

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"Wayne Brasch" <waynebrasch[at]stowetel.com> wrote:
- quote -

There is also a very good chance that for some period your
business expenses will exceed your business income and thus
reduce your taxable income from your "regular" job, assuming
you have one. Getting professional help to get started on
your taxes is pretty much a necessity in your case.

Ivan

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- quote -

Obviously, this "someone" is not a person who does taxes or
accounting for a living.

Carol

If you awoke to find yourself a success, you weren't asleep.
Semper Gumby (Always Flexible)

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"Webmaster" <info[at]redserve.com> wrote:

- quote -

Tell your friend to stick with his or her day job.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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"Webmaster" <info[at]redserve.com> wrote:

- quote -

In very simple terms-whoever told you this is incorrect.
What matters is if at the end of March 2003, May 2003,
August 2003, or December 2003 you would owe any taxes
including self-employment tax, you must make estimated
payments in order to be in compliance with the tax law.

Wayne Brasch, CPA, M. S. Taxation

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"Webmaster" <info[at]redserve.com> wrote:

- quote -

It is not true.

If you have not incorporated, the income from the business
is reported on Schedule C of your personal income tax
return. The expenses are reported on the same form to
reduce the profit.

The profit will then be used to determine your "self
employment tax" which is approximately 15%.

The profit will also be added to all your other income and
then reduced by adjustments, exemptions and deductions. Tax
will be calculated on the balance or "taxable income".
Credits will be applied to reduce the tax, the "self
employment tax" will be added and you will be given credit
for any amounts paid in such as withholding from wages.

This is a very simplified overview. I would recommend that
you seek professional assistance in this first year of
business to be able to see how it is done and to ask
questions regarding deductions, depreciation and other
options for your business entity.

--
Sincerely,
Joanne

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"Webmaster" <info[at]redserve.com> wrote:

- quote -

In very simple terms-whoever told you this is incorrect.
What matters is if at the end of March 2003, May 2003,
August 2003, or December 2003 you would owe any taxes
including self-employment tax, you must make estimated
payments in order to be in compliance with the tax law.

Wayne Brasch, CPA, M. S. Taxation

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"Webmaster" <info[at]redserve.com> wrote:

- quote -

It is not true.

If you have not incorporated, the income from the business
is reported on Schedule C of your personal income tax
return. The expenses are reported on the same form to
reduce the profit.

The profit will then be used to determine your "self
employment tax" which is approximately 15%.

The profit will also be added to all your other income and
then reduced by adjustments, exemptions and deductions. Tax
will be calculated on the balance or "taxable income".
Credits will be applied to reduce the tax, the "self
employment tax" will be added and you will be given credit
for any amounts paid in such as withholding from wages.

This is a very simplified overview. I would recommend that
you seek professional assistance in this first year of
business to be able to see how it is done and to ask
questions regarding deductions, depreciation and other
options for your business entity.

--
Sincerely,
Joanne

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"Webmaster" <info[at]redserve.com> wrote

- quote -

I think you need to worry well before then.

- quote -

Depending on the business structure and the products or
services sold, you might should have worried ~before~
starting the business. For local taxes, like sales tax,
etc., the limits are generally from the first dollar.

I'd schedule a meeting with a local CPA or EA to see what your tax reporting
needs really are.

--
Paul A. Thomas, CPA
taxman[at]negia.net

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- quote -

Good, because it is not. Get thee to a qualified tax
professional and get started on the right foot.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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"Webmaster" <info[at]redserve.com> writes:

- quote -

It doesn't seem "right" 'cause it's not!!! You must report
all of your income and expense from the business. If your
net profit exceeds $433. you must pay Self-Employment taxes
on that income.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I started an online business early this year. I was told by
someone that I do not need to worry about reporting taxes on
the business until the business sees over $10,000. Is this
true, it does not seem right to me..

Jes

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