Joe wrote:

- quote -

You need to improve your Google search criteria. If you
just enter the two words estimated taxes, your first hit
would be IRS Pub 505. Your answer is there.

--
Alan
http://taxtopics.net

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- quote -

Joe, you'll want to check, locally, to see if there are any
license or zoning requirements applicable to you or your
business.

When you file your tax return, you'll use Schedule C (Form
1040) "Profit or Loss from Business" to report your income
and expense. In addition to any income tax you may have to
pay, you'll have to pay self-employment tax to the tune of
15.3% (less a minor adjustment on your return). You may
have to pay estimated tax if you are going to owe over
$1,000 on the bottom line of your 2004 tax return, you have
not paid in as much as was your last year's tax, or will
have paid in less than 90% of what will be your 2004 tax.

If you believe you will have greatly underpaid your tax, and
in order to avoid penalty, you may ask your employer to
withhold additional amounts of tax from your pay. You may
also be faced with state and local tax issues.

We can't tell you what your burden will be without all the
figures. However, you may be able to make a close
determination by completing the worksheets for Form 1040ES.
You'll find that form here:

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Good Luck!!=

"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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Hi All,

This is my first posting to this group. I searched google for an
answer to my question but I couldn't find it so I apologize if this
has been batted around before.

About 2 and 1/2 months ago, a friend hired me as a contractor to
do some work on a software project at the company he works at. We
agreed on an hourly rate and so far I have received one check. It
was a regular check made out to me for the number of hours I worked
that month. It was for about $4,500 and no taxes were taken out as
I was not an employee of the company. I got the check mailed to my
house at the beginning of July. (I live in MA., if it matters.) I
will be expecting 2 more checks for about the same amount.

Here's my question. When do I file this money with the IRS (do I
file/declare it quarterly or at the end of the year) and
approximately how much will I have to pay in taxes(Federal, State,
and anything else that there might be)?

Any help would be greatly appreciated. Thank you.

Sincerely,
Joe

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->