Yes and you will have more than just 1 type of tax and tax returns that you will have to deal with for this purpose and time in your life as a retail dealer that is self employed at home with your own business operation going on at that time in your life.
sales tax for your local taxing authority in your area you will be the sales tax collector and be responsible for collecting the necessary sales tax that you will be required to collect for them by following ALL of the rules that they will have to explain to you and you will have to abide by and also use the forms and the required schedules that you will have to use to remit send the sales tax that will have collected on the sales that will be taxable in your local area at the rates that they have you collect for them at that time in your life
Next taxes self employment taxes social security and medicare taxes on your NET profit from your schedule C and your SE of your 1040 income tax return and then any possible federal income tax that could also be due and also the state income taxes that could be due on your NET profit from your SE business operation at the end of the tax year.
And maybe even in the next tax year have to fill and pay some $ amounts of quarterly estimated taxes to the IRS and the state income tax departments during the next year.
Very good daily detailed written records and receipts of all of the ordinary and necessary expense of the business operation is one of the NEEDED requirements for any one that is involved in any type of self employed independent contractor business operation.
You would be a self employed independent contractor with your own business operation and your ORDINARY and NECESSARY business expenses that you NEED to have GOOD detailed daily written records of for this purpose will HAVE to reported on each separate LINE of the schedule C of the 1040 tax form for this purpose.
And here you go using the below information should help you get started for your first year as a self employed independent contractor and as you progress and your business starts to grow you may even need some good professional assistance with it for your future.
Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.
You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business
http://www.irs.gov/instructions/i1040sc/…
Specific Instructions
http://www.irs.gov/instructions/i1040sc/…
For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.
Use the search box at www.irs.gov for Publications and Forms for the Self-Employed
http://www.irs.gov/businesses/small/arti…
All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.
Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business
In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business.
For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.
Publication 463 Travel, Entertainment, Gift, and Car Expenses
Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center
Go to the IRS gov website and use the search box for the below referenced material
*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)
http://www.irs.gov/
http://access.wa.gov/business/taxes.aspx
Hope that you find the above enclosed information useful for your situation and good luck to you. 11/07/2011