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Get ready to file taxes on self-employed income in QuickBooks Online

SOLVEDby QuickBooks356Updated October 10, 2023

Whether you're filing self-employed income tax for the first time or need a refresher, we're here to help. This is what you need to know to be ready and feel confident at tax time. 

Filing self-employed income tax for the first time

If you're self-employed, you likely need to pay federal self-employment taxes. These payments cover your income, Social Security, and Medicare taxes for your self-employed work. 

Most businesses pay income taxes each quarter based on an estimate of what they'll owe at the end of the year. Find out more about quarterly tax payments and get other self-employed tax info at the IRS self-employed tax center

Stay on top of deductions throughout the year

Step 1: Connect your bank to bring in your transactions

You can lower your tax liability by collecting deductions as they happen during the year. The fastest way to get your transactions in QuickBooks Online so you can categorize them is to connect your bank.

Step 2: Categorize expenses as they happen

To make tax time less stressful, categorize your transactions as they come in. The more often you sort your expenses, the easier it is to find deductions and save money at tax time.

QuickBooks Online lays out all the common business tax deductions for you. As you categorize transactions, you'll add to your deductions on the Income tax page.

Step 3: Save money at tax time by claiming all your deductions

To read more about common deductions, see our complete list of self-employed expenses and tax deductions. You can also browse common tax deductions by industry

What to do at tax time

It's a good idea to start your tax return as early as possible. You can start early and add more info as your forms arrive. Check out our complete guide to taxes for the self-employed and how to file small business tax returns.

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