Remember last time, when I told you all to get a move on and get your tax license? And I promised I would show you how easy it is to submit said taxes?
I keep my promises. To wit:
Step 1: Fill in the ovals.
Step 2: Copy all of that onto the next sheet, which is for your records.
Step 3: Write out the check and mail it in.
I’m not kidding. It is that easy.
….
Oh, alright, fine. I will tell you what the ovals mean.
1. Do the yellow ovals in the top-right first. Record your “gross sales” up top (that’s how much money you took in, overall). The next oval need to be subtracted from the first. These are sales to licensed dealers (i.e. your wholesale accounts). Subtract them, and write the result in the third oval.
2. Now go to the left. We are still on the yellows. Copy the last oval you did (gross minus wholesale). Under that, write the total of the out-of-state sales you had. If you have an Internet business, this number may be large. Subtract those two yellows, and write the result in the last yellow.
3. Copy that last yellow into the top blue and purple ovals.
4. Now calculate your tax, going down instead of across. Multiply the blue oval times that first tax rate, and write the result in the next blue oval, below. Still heading downward, multiply times your service fee rate. Subtract that from your taxes (bonus!), and write the result in the last blue oval.
5. Repeat the blue steps for the purples.
6. Add the last blue and last purple ovals, and put that result in the red oval. That’s how much you owe. Now copy the paperwork, either by hand (they give you a sheet where you can copy the numbers, for your records), or on your copy/print/fax/miracle machine.
7. Whip out your checkbook, and write a check to the state. Mail it in the envelopes they sent you. The state sends you all of this stuff–you don’t have to request it.
And that’s it! Quarterly taxes filed! In the next Biz Tuesday, I’ll show you how I keep my books. Maybe I’ll even take a photo of the drawer that houses all my receipts. Yes, an ENTIRE DRAWER.
Amy Kalinchuk does her taxes in Denver, Colorado. She had a really good eBook month in January. Have you ever wanted to write a crafty ebook? She’d love to hear from you: http://www.crafte-revolution.com
