MonikaK1
Expert Alumni

Business & farm

If you are self-employed, and report your income and expenses on Schedule C, you cannot pay yourself a "salary". You will report your income and expenses on Schedule C and pay self-employment tax on the net income of $400 or more up to the annual limit. If you have a single-member LLC, this would also be disregarded for tax purposes and you would still file Schedule C.

 

You would need to be incorporated in order to pay yourself a salary. The decision to incorporate is complex and has wide-reaching ramifications beyond your tax return, so you should obtain legal advice.

 

See this TurboTax article for more information on the self-employment tax.

 

See this TurboTax tips article and this one for more information about incorporating and taxes.

 

@Lwick22

 

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