Tax Question

[WebGuySteve]

I know this has been discussed before, but, I can not find anything useful using the search function (surprise, surprise) I come to you guys since this is where I lurk most often, and sometimes post.

I have started earning enough money to start claiming income for taxes for 2005. I plan to do this right, or at least more or less right. I have tried to talk to accountants, but they kind of just agree with me, and offer no real advice. What do you guys do, and how is it done?

I have heard that you file as a small business and pay roughly 30%. If I do this, but claim say, 75% of my income, or 50%, what risk, and penalties are there for doing such?

Thanks for any help you guys can give, and feel free to flame away as I know this can get very subjective [img]/images/graemlins/frown.gif[/img]