|
|
| For Individual >> |
Self employed |
 |
| Who is Self-Employed? |
| If you are in business for yourself, carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself as a self-employed individual. You are an independent contractor if the person for whom you perform services for has only the right to control or direct the result of your work, not what will be done, or how it will be done. |
|
|
| Do I Need an Identification Number? |
| You must have a taxpayer identification number to operate your business. This is generally your social security number, or an individual taxpayer number. |
|
| Filing Requirements for the Self-Employed |
As a self-employed individual, you may be responsible for completing multiple tax forms, depending on your type of business. Self-employed individuals, sole-proprietors, independent contractors and persons who have net earnings of $400 or more are required to pay self-employment tax by filing Schedule SE (PDF), attached to their Form 1040, U.S. Individual Income Tax Return. Employees of a church that receive income of $108.28 or more, but do not receive a Form W-2 for the earnings must also file pay self-employment tax by filing a Schedule SE, attached to Form 1040, U.S. Individual Income Tax Return. |
If you have employees, you must pay employment taxes, including Federal income, Social Security, and Medicare taxes. |
If you manufacture or sell certain products, operate certain kinds of businesses, use various kinds of equipment, facilities, or products, or receive payment for certain services, you may need to pay excise taxes. |
Estimated tax is the method used to pay (including SE tax) on income not subject to withholding. You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax, of $1,000 or more when you file your return. |
|
| |
| |
| |
| |
|