Various 1040 Forms
• Form 1040, Individual Income Tax Return
Form 1040 rules at the top of the stack and summarizes all the other forms we submit with it.
• Form 1040 Schedule SE, Self Employment Tax
Must be filed with Form 1040 by anyone who earned over $400 in self-employment. (If you are a church employee or minister, different earnings tiers may apply so check the form.)
• Form 1040-ES Estimated Tax for Individuals
As a self-employed business owner, you don’t just deal with the IRS once a year -- you pay estimated tax four times throughout the year at set dates, so that by January of the next year, you will have paid in enough to equal the tax that will be shown on your April return or more.
You must take the initiative and keep on top of these dates and payments. Since the IRS is entrusting you as a business owner to take responsibility for paying your own taxes they don’t babysit you. Form 1040-ESP, used for computing and paying quarterly estimated tax, is one most small business owners wish didn’t exist, but it does prevent sticker shock in April since it keeps us up-to-date with tax payments through the year.
For the full scoop on paying estimated taxes, read this article.
Now, thanks to EFTPS, Electronic Federal Tax Payment System, a convenient free service from the Department of the Treasury, meeting quarterly estimated tax deadlines is a lot easier than it used to be -- you can forget about scribbling out a check at the last minute and dashing to get it in the mail with the 1040-ES Form. We’ll show how you can take advantage of it when we get to the nitty-gritty of paying the taxes you owe in our Quick & Easy section.. But if you can’t wait, go sign up for EFTPS now.