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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.
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March 30, 2023
9:41 AM