I just started my business last year, although i've been in the industry for about 12-13 years as employee. Iearned about 18,000 maybe before expenses. Not that great of a year, this year i hope to atleast double that. Anyways i did register for a business liscense, but registered soleproprioter and used my ss# even though i paid sales taxes on everything i purchased. I also purchased some new equipment like trailer 1500 and exmark mower....5000. Ifailed to pay any taxes on my earned income because i needed every dime i made last year. I have no employees. And don't need unemployment. I did get insurance that only costed 250 a year. I have large family to support...three kids and wifewho just started working as i stopped for the year(midwest) i still do snow removal although we've had very little. My question is how any of you handled your first year taxes, i know it wasn't smart to not pay quarterly, but when you have three little kids and wife to support i needed every penny. This was done kinda on a whim, because my former boss found out i was doing extra work on the side and said one or the other. And i had already spoken up for taking care of four or five lawns and landscapes. Iwasn't about to tell them i couldn't do it because my boss said so. I'm liscensd to apply fertilizer and very expirenced at all aspects of lawn and landscape installs and maintenance. I actually feel as though for starting on the drop of a dime in late march i did rather well. I'm sure i'll grow leaps and bounds this year and with the wife having a steady job i can actually do everything the right way(paying quartely taxes).But last years tax debit worry's me. I here everyone say there first couple years they claim a loss, even though i spent a small fortune on gas, mulch, small tools and materials....how can i say it was a loss?? Isupported the family pretty good all the way up till thanksgiving. I'm very curious to hear everyones thoughts on this. And since every dime i earned ran through my business checking account do i use that as my total earned income?? In past years i always recieved a very good income tax return is this mistake gonna effect it drastically?? Thank you all in advance for your response.