Save Income and Expense Receipts

• Simplifying the tax return process begins well before tax time. Saving your income receipts, in the form of either 1099 forms, check stubs from clients or your own accounting records, can quickly reveal how much money you have earned throughout the year. Saving expense receipts can simplify the process of calculating your deductible business expenses.
  
  

Paying Taxes

• Calculating your tax liability is less than half the battle for many entrepreneurs; often the real challenge is coming up with a year's worth of tax money in the one or two months' notice you will have after calculating your debt. Set aside 10 percent to 15 percent of your income throughout the year to ensure you can pay your obligation in full at tax time. Consider filing taxes quarterly, rather than annually, to avoid facing large tax burdens all at once.
  
  

Tax Forms

• As a self-employed individual, you will need to file Form 1040 and Schedule C of the same. Both forms can be downloaded for free from IRS.gov. Complete Schedule C of Form 1040 to calculate your profit or loss from business activities. Calculate your total income in part one, and your total expenses in part two. Use parts three through five to calculate totals for the "cost of goods sold" and "car and truck expenses" categories in part two. Move on to Form 1040, and begin by listing your personal information and claiming any exemptions. Use the Income section to calculate your taxable income for the year, including your total from Schedule C. Use the Adjusted Gross Income section to list and total your deductible personal expenses for the year, then use the next section to claim any additional credits and deductions.
  
  

Filing Taxes

• Tax forms and payment can be sent to the IRS online or through the mail. Use the IRS's free e-file service to upload your tax forms and submit payment online. Mail your return to the address listed on the Form 1040 instructions if you choose to use the postal service.