If you are self-employed and live in Orange County, California, you will need to file a tax return with the Internal Revenue Service (IRS) as well as the California Franchise Tax Board.
As a self-employed individual, you are responsible for paying your own taxes, including federal and state income tax, as well as self-employment tax (Social Security and Medicare tax). You will need to report your self-employment income on a tax return using a Schedule C (Form 1040), which is used to report profit or loss from a business.
To prepare your tax return, you will need to gather all of your tax documents, including any forms 1099-MISC that show your self-employment income. You will also need to keep track of your business expenses, as you can claim deductions for certain business expenses that you incur in order to run your business. Some examples of deductible business expenses include the cost of supplies, utilities, and rent for a business location.
It is a good idea to keep detailed records of your income and expenses throughout the year, as this will make it easier to prepare your tax return and ensure that you claim all of the deductions you are entitled to. You may also want to consider consulting with a tax professional or using tax preparation software to help you prepare your tax return.
If you are self-employed and have employees, you will also need to pay employment taxes, including federal and state unemployment taxes. You will need to report your employment taxes on Form 940 (Employer’s Annual Federal Unemployment Tax Return) and Form DE 9 (Quarterly Contribution Return and Report of Wages).
If you have any questions about preparing your tax return as a self-employed individual in Orange County, it is a good idea to consult with a professional tax consultant or refer to IRS resources and guidance.
Are you in need of tax preparation assistance in Orange County? Look no further! Robert Hall & Associates has recently opened an office in the area to provide professional help with all of your tax-related needs, including personal and business taxes. Hiring a professional tax preparer can take the stress out of tax season and give you peace of mind knowing that your taxes are being handled accurately. Our team at Robert Hall & Associates is ready to guide you through the tax preparation process.
