How do I start paying taxes from contract work and help with tax tips?

I started a year ago doing 2 maintianece contract work and got about $40,000.00 in 2006 and I still had not paid taxes because I didn’t know where or how to. My contract place just gave me a 1099Form. I’m single and I recently just got a regular W-2 job. I’m in Minnesota. I am afraid I will to paid an outrages amount of taxes. And also I had not been keeping receipts for the year 2006.

It will help you to go to the IRS website, and learn more about what you are doing, or hire a bookkeeper or tax consultant. www.irs.gov, business …. will give you tips on record keeping, etc. If you have no record of your expenditures, you have got your self some taxable amount there.

good luck & bless