So, why precisely are taxes a lot extra difficult as a contract make-up artist than once you labored a 9-to-5 job? That’s since you’re now thought-about an impartial contractor. While you work a full-time job, your employer routinely deducts federal and state taxes forward of time, which is mirrored within the paycheck you obtain. As a sole proprietor (a.okay.a. somebody who’s self-employed), you obtain full pre-tax fee from purchasers. Which means that you later have to pay federal and state earnings taxes and contribute to applications similar to social safety and Medicare.
To report your earnings and pay these taxes, you’ll have to fill out the kinds Schedule C, Schedule SE, and Type 1040 yearly. Nonetheless, it’s essential to notice that you just’ll have to pay your taxes quarterly utilizing Type 1040-ES. Seek the advice of the IRS quarterly tax deadlines to maintain monitor of once you’ll have to submit your funds. (Spoiler alert: first quarter taxes are due April 15!)