Yes, you will need to file Form 1040. You will also need to include Schedule 1 and Schedule C with your tax return. These are the required forms when you are self-employed such as Schedule 2, Schedule SE, Form 4562, and others. Show
What is my tax ID number for my business?Your personal tax ID number is your Social Security number (SSN). Your business should have a unique employer identification number (EIN) as well, and you must apply for the number. If you don’t have any employees and your state doesn’t require a separate number, you can use your SSN for your self-employment income. If you have employees or are otherwise required to, you must complete an online Form SS-4 (the EIN application) with the IRS to get an EIN.
My husband and I are joint owners of a business – do we have to file as a partnership?The IRS has special rules for a husband-and-wife business team. If you and your husband are the only members of a business you both operate and work, you can elect to be treated as a qualified joint venture and file two Schedules C, or Schedules F, splitting all income and expenses. If you use your vehicle for business purposes, you may be able to deduct expenses associated with such use. What can I deduct from my side job or self-employment income?There are many expenses you can deduct from your business:
You may recover your investment in certain business-related properties (such as equipment, a vehicle, or a building) through the use of depreciation. What are the tax changes this year?
Other benefits of self-employment:
Here are some additional taxes for small business owners:
There is an additional Medicare tax of .9% for self-employed taxpayers who have a total earned income of more than $200,000 ($250,000 if married filing jointly or $125,000 if married filing separately). |