Q. I started providing stock photos for a local non-profit organization. I billed the organization by the hour and earned $2500 total. They paid me directly by check. Regarding taxes on this, how do I pay it? Can I wait and pay all my income and self- employment taxes at once, each year, through a Schedule C and Schedule SE? Or do I need to make estimated quarterly payments?

A. Yes, you are liable for paying taxes yourself and may have to make quarterly estimated payments, instead of waiting until April 15th. Once you figure out your expenses for your work, and subtract the expenses from the income, the profit shown on Schedule C counts as reportable income. One of the advantages of being self-employed is that you can deduct many expenses incurred for business reasons. This would include depreciation on your computer, home office expense, photo supplies, any direct expenses (stationery, printing, envelopes, travel, automobile, etc.) related to your stock photography business. You also fill out Schedule SE for the Self-Employment taxes on the next profit. To make quarterly payments, fill out a form 1040-Est which you can download from > www.irs.gov < . In addition to the income tax, the self-employment tax (which is FICA tax) is 15.30% of your net profit. But you get a deduction for half the self-employment taxes on page 1 of Form 1040.