This is my first year as a professional barber and i am wanting to find out how would i go about filing my inc?

this is my first year as a professional barber and i am wanting to find out how would i go about filing my income tax return even though i get paid in cash???? also i have a 8 month old son which i would need to file as a dependent also..thanks for all the answers in advance.This is my first year as a professional barber and i am wanting to find out how would i go about filing my inc?
If you are self employed, either in your own shop or by chair rental in someone else's shop, keep very good records of all of your income, including any tips, and of any business related expenses. You'll fill out a schedule C to show your income and expenses, and a schedule SE to calculate your self employment tax (for social security and medicare), and a form 1040 to calculate your total tax. The numbers from the bottom of the two schedules will transfer to your form 1040.





If you are an employee of someone, you'll get a W-2 and it will work just like any other job.





You'll show your son as a dependent on your 1040 form and claim his exemption, plus any credits you are eligible for.This is my first year as a professional barber and i am wanting to find out how would i go about filing my inc?
Aassuming you are a sole proprietor of the barber shop, you file form 1040 along with Schedule C - Profit and Loss from Business and Schedule SE - Self Employment Tax. Maintain written records and receipts of your income and expenses. For those expenses you incur in operation of the barber shop such as supplies, utilities, rent, advertising, etc. used in production of income are deductible.





As to the filing status, you haven't stated enough information to advise you whether or not you file married joint with a dependent or head of household (if you are raising the baby by yourself) with a dependent.





You might consider going to a tax professional for the first year to avoid any problem or inquiries from IRS.
1. You complete either a Schedule C or a Schedule C-EZ, and report all your income, including cash payments, on whichever of those Schedules you use.


2. You then copy your net profit (after deducting certain expenses on Schedule C or a Schedule C-EZ) from Schedule C or a Schedule C-EZ to both Schedule SE and the ';business income'; line of Form 1040.


3. After completing the math required by Schedule SE, you copy the amount of self-employment tax from Schedule SE to Form 1040.


4. You then complete the rest of Form 1040.


5. You staple all the Forms and Schedules in the correct sequence and mail them.
You are self employed. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-鈥?/a>

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