General First Time Filing Self Employed Question


Hello - first of all thank you for reading this. I actaully have a few questions about what I need to do , what I need to bring for filing my 1st self earnings income taxes.

Let me start with a little background. Last year 2010 I just kinda started up odd jobs and didnt keep receipts etc. because I thought it was just going to be like short term odd jobs and I'd find another job down the line. So to my understanding if you didnt make a certian amount of money then you didnt have to file.

Well therefore I didnt file anything last year. But I didnt really make any money last year. Especially what one might call a gain. But it became aparent to me that I was getting more work so I needed to keep records. So I asked around about what I needed. I was told to 1)keep records of income. (so I opened a bank acount for the purpose of keeping up with all deposits) and 2) keep all my receipts for jobs , example gas for mowers, eqiuptment repairs, mulch and trees an so on. So thus is what I have done for 2011.

But - It was my understanding that if I werent doing a job for over $600, or $600 for the year for a person or business. Then I didnt need any 1099 forms.

I;ve been doing General Lawncare & Landsacpe on my own with no employees. This year I have kept all my bank statements, deposit slips that were made with my lawn service. Also kept all my recipts relevant to my work.

Now dont misunderstand I didnt make alot of money this year either. But I made enough to where I need to file as income earned for the year. So to keep proof of income an so forth. Also stuff like this effects future credit, etc. So I guess I'm at a point where I dont make enough money to keep an acountant, but I still need to have something to file that I did earn some income this year.

So I guess my question(s) would be.. what do I do now that I have all my bank statments for 2011. & all my exspense reciepts for 2011. Thus is not a substantual amount of money. Some weeks I may have made $200 to $300. And some weeks I wouldnt make anything.

But Now my problem is I had no jobs that were for $600 or more. So I didnt keep any 1099 records. So I guess thats where I'm confused on what forms to file or what kind of tax service to use.

I'm Single (not married) and no children or dependants to claim. I have not yet added up all my recipts & totals for the year/ but off the top of my head that its less than 7 to 8 thousand for the whole year. Before taking anything out for exspenses.

( & what about social security tax? )

So to sum it up , this would be my 1st year to file as a independant / self employed earnings? and I have no idea where to start. & all I have are my Deposit slips for my bank account. & receipts for items used for work.

Now there may be other factors that I have not kept up with that may be helpful. That I dont have but I could track down proof that I paid things such as a cellphone. I have a cellphone & need it for my people to call for estimates or appointments. But I havent kept cell phone records. But I could get records from my Cell Phone carrier if that would help. Then theres like property tax on my truck that I use to hall my equiptment etc. Someone told me I might could be reimburst a precentage of that since its my worktruck.

If not, thats fine. But I still need to file something.

Ok i'll try to stop thus long email question here, because I think Ive probally give you enough information to see where I'm coming from & how lost I am. Thank You for your taking the time to read & I await any response or advice you might have.

Comments for General First Time Filing Self Employed Question

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Sep 22, 2015
Cool! NEW
by: Kerry

This is a very interesting topic. Thank you for asking, and thank you for answering. Haha Great website!

Feb 09, 2012
Self Employed Filing For First Time
by: Steph

Thank you for your first time filing self employed question.

Many people like you feel overwhelmed and confused about exactly what they need to do when filing as self employed. It sounds like you have been given some decent advise and have taken some good first steps with regards to keeping your deposit and expense receipts.

An easy way to keep track of your income and expenses for filing your income tax return is to use an accounting software such as Quickbooks. With this you would set up your bank account and input your deposits and expenses as they occur and then reconcile the account to your bank statement at the end of each month. This would then provide you with a profit and loss at the end of the year to use to prepare your taxes.

If you would prefer to do it by hand, you can simply total all of your deposits and this would be your income. Then categorize and total each of your receipts which would be your expenses. You can also deduct business use of cell phone and vehicle registration.

You would determine the business use of vehicle registration based on the percentage of business miles driven vs total miles driven for the year.

Getting a 1099 for receiving over 600 in a year is a requirement for companies who pay you. It is up to them to provide you with a 1099-Misc with the total amount you earned from them during the year, irregardless of whether the amounts paid were all individually under 600. Otherwise, if you paid out money to others for contract labor, you would be the one who are responsible for providing the 1099 to the person you paid.

I hope this makes sense and helps answer your question. Take care!

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