Hi! So this is my first year filing since I started a small Storenvy shop.
I haven't received any forms (like a 1099) and I'm honestly quite clueless on what I should be doing for filing taxes, I'm assuming I'll be doing self employment taxes since it was my only job this past year. I used both Stripe and PayPal for the transactions.
I made a total of $2,637.45 for 2017 before expenses. Any idea what forms I should be looking at for filing? I was looking at the 1099 and who exactly would be the "payer" in this case? Do I even have to fill that? I did less than 200 transactions.
Thanks for your time.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.
You need to report all your income even if you don't get a 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.
After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57. The SE tax is in addition to your regular income tax on the net profit.
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
I found your answer to be helpful for my Inteiror Design business (sole prop), no employees. I filed my ST-12 sales and tax form ($0) on the WI revenue site already. My question is, Im supposed to file a 1099 or W2 by Jan 31st But im not sure which one to do or if those two are the correct form. I did make $4,000 on cash/check consultations, so do I need to file a 1099, W2 or 1040 return to the state in order to get the form in the mail!?
@lynlegray4397 If you have no employees you do not file a W2 for anyone. If you don't pay any subcontractors you don't give a 1099Misc to anyone. You do not fill those out for yourself. You enter your income as cash or general income on Schedule C. You might receive a 1099Misc from someone if they paid you more than $600. But you do not need to get a 1099Misc to report your income.
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.
How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653