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At its most basic, here is how to file self-employment taxes step-by-step. Calculate your income and expenses. That is a list of the money you've made, less the amount you've spent. ... Determine if you have a net profit or loss. Fill out an information return. ... Fill out a 1040 and other self-employment tax forms.
The goods and services tax (GST) is a tax of 10% on most goods and services sold in Australia. If you run a business, you are likely to have some GST obligations. your purchases for your business. This means, if your business is registered for the GST, your customers pay the cost you charge plus 10% extra.
GST calculation formula example: Say you are selling a commodity from Mumbai and sending it to Kolkata for Rs. 10,000, and the rate of GST applied on it is 12%. The GST amount applicable for it will be (10,000 x 12) / 100 = Rs. 1,200; and the net price will be Rs. 10,000 + Rs. 1,200 = Rs. 11,200.
Independent contractors report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Also file Schedule SE (Form 1040), Self-Employment Tax if net earnings from self-employment are $400 or more.
To calculate the net GST/HST to remit, multiply the amount from your taxable supplies (including the GST/HST) made during the reporting period by the applicable quick method remittance rate(s). The quick method remittance rates are less than the GST/HST rates of tax that you charge.