We use Turbo Tax Home & Business. I recommend it. (Neither Deluxe nor Premier covers what sole proprietors need.)
As far as the employer portion of FICA/Medicare, you'll do a Schedule SE (Self-Employment Tax), and the amount will get transferred to your regular 1040.
You still have one more opportunity to make an estimated tax payment for tax year 2007. The 4th installment is due Jan. 15, 2008.
The first year my husband self-employed, we underpaid our estimated taxes and would have incurred a penalty. However, we sent Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts) where we requested a waiver of the penalty. We attached a one-sentence letter explaining that it was his first year in business and so we didn't know what our taxable income or taxes would be. We deducted the penalty from our taxes, and the IRS never came back to us demanding we pay the penalty. I suppose that underpayment is common the first year in business, and the IRS understands that.
That was 7 years ago. Since then, we learned and have always paid just the amount required in estimated taxes to avoid a penalty.
BTW, have you set up a retirement plan for yourself such as a SEP-IRA?
Good luck with your new business!
__________________
“May you have warm words on a cold evening, a full moon on a dark night, and a road downhill all the way to your door.” - Irish Blessing
|
