• About Us
• Customer Support

July 30, 2010

E-Mail This Article Printer-Friendly Version

This month, Small Business Tax News features some more questions and answers from the IRS on issues related to small businesses and individuals that are self-employed.

Question: I am self-employed. How do I report my income, and how do I pay Medicare and Social Security taxes?

The IRS: Your self-employment income is reported on Form 1040, Schedule C, Profit or Loss from Business, or on Form 1040, Schedule C-EZ, Net Profit from Business, and on Form 1040, Schedule SE, Self-Employment Tax. Form 1040, Schedule SE, Self-Employment Tax, is the form that individuals who are self-employed use to compute their liability for Social Security and Medicare tax.

As a self-employed person:

• You pay your Medicare and Social Security taxes the same way you pay your income taxes.
• You can pay them when you file your income tax return if you expect to owe less than $1,000 in total taxes.
• You will need to make estimated tax payments if you expect to owe $1,000 or more in total taxes. These payments are made quarterly using Form 1040-ES (PDF), Estimated Tax for Individuals. You will need to figure these taxes at the beginning of the year. 

For more information, please consult the following:

• IRS Publication 334, Tax Guide for Small Business
• IRS Publication 505, Tax Withholding and Estimated Tax 

Dear Small Business Tax News Readers,

Remember that you can get your important tax questions answered in a manner very tailored to your specific situation by sending your queries to us here at Small Business Tax News.

Send us an e-mail (service@ sbtaxnews.com), a “snail mail,” a fax, or give us a call and explain your issues. We will investigate your inquiry and consult with the leading policymakers, government officials and practitioners in the field while maintaining your privacy.

It’s one of the benefits of a being a valued subscriber, so consider taking advantage of it.

-- The Editors at Small Business Tax News