IN THIS PART …

Track your business revenues and costs, and understand record-keeping issues (like when to stash and when to trash).

Peruse your Form 1040 filing options: Form 1040EZ (a breeze!), Form 1040A (known as the short form), and Form 1040 (known as the long form).

Make sense of Schedule C and C-EZ. The following are among the qualifications for Schedule C-EZ: Your deductible expenses can’t exceed $5,000, you can’t have an inventory of items for sale, you must operate only one business as a sole proprietor, and you must use the cash method of accounting.

Report the business use of your home; to do so, you need to fill out IRS Form 8829. Watch out, though; be aware of the downsides of home office deductions.

Complete self-employment and other small business–related tax forms, such as IRS Form 1040-ES (“Estimated Tax for Individuals”) and IRS Form 8889 (“Health Savings Accounts”).