Tax Income

Collect all your financial records for the tax year, including income statements, invoices, receipts, and expense documentation. Ensure these records are organized and accurate.

Identify whether your self-employed consulting work is classified as a sole proprietorship, LLC, or another structure. This affects how you file taxes and your deductions.

Add up all income earned during the tax year from consulting projects. Include any additional revenue streams related to your business activities.

Identify eligible business expenses, such as office supplies, software, travel, professional development, and marketing costs. Deduct these expenses to reduce your taxable income.

As a self-employed individual, you'll need to pay both employer and employee portions of Social Security and Medicare taxes. Use IRS Form SE to calculate self-employment taxes.

If your income is significant, you may be required to pay estimated taxes quarterly throughout the year. Use IRS Form 1040-ES to calculate and submit estimated payments.

Fill out Schedule C (Profit or Loss from Business) to report your earnings and expenses as a self-employed consultant. Attach it to your personal tax return (Form 1040).

Submit your completed tax return, including Form 1040, Schedule C, and any other required forms, by the tax filing deadline. You can file electronically or via mail.

Store your tax return and supporting documentation securely for at least three years. These records may be needed in the event of an audit or for future tax filings.