Can I file and pay self-employment taxes for last year that I apparently missed? Will that be counted towards social security credits if I didn't receive 1099?

[gk630]

Worked for cash last year (short term substitute for caregiver ). Didn't know it is considered self-employment and did not file or paid any taxes last year. I thought I could pay now before filing tax return and it is the first time that I don't have w2 and even 1099. I'm worried about Social security /Medicare that I did not pay. Is there any way to fix the situation? 

[VolvoGirl · Accepted solution]

Oh, for 2018?  You can use the online version or buy the Desktop program.  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.

How to enter income from Self Employment

https://ttlc.intuit.com/replies/4801198 

[gk630]

Thanks a lot, VolvoGirl!  Just last thing to clarify, please - - will my self-employment taxes (social security /Medicare)  be calculated in Premier version  and will I be able to pay them online even if it's a late payment?  (I was supposed to pay them over the course of 2018 year, and did not pay )  sorry, I'm the first time user.

[VolvoGirl]

Yes.  And you didn't exactly need to pay over the year.  You were suppose to send in quarterly Estimated payments to cover the tax due on your return.  It was not the actual tax but like withholding from paychecks.

It's all reconciled on your tax return.  The SE Tax is included in the tax due on your return.  

[VolvoGirl]

Here's some information.  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 Schedule 1 line 27.  The SE tax is already included in your tax due or reduced your refund.  It is on the Schedule 4 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
<a rel="nofollow" target="_blank" href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center"...>

Pulication 334, Tax Guide for Small Business
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p334.pdf">http://www.irs.gov/pub/irs-pdf/p334.pdf</a>

Publication 535 Business Expenses
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p535.pdf">http://www.irs.gov/pub/irs-pdf/p535.pdf</a>

[gk630]

Thank you so much, VolvoGirl! I'm going to use the product you recommended.

[VolvoGirl]

Yes file a 2017 return.  You will need to fill out schedule C and pay self employment tax on it to get Social Security Credit.  You are suppose to file a return for only $400 or more self employment income.  

You can only buy the download for prior years.  You need a full Windows or Mac computer to install it on.  Buy the download here     https://turbotax.intuit.com/personal-taxes/past-years-products/  

You have to print and mail prior year returns.  When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS received the return.  Don’t forget state.  How to file a prior year
https://ttlc.intuit.com/questions/1900990-how-do-i-file-a-prior-year-tax-return

[gk630]

Thank you, VolvoGirl!  Sorry for confusion but I meant I worked for cash in 2018 (not 2017)..Should I use the link you gave anyway? What product would you recommend for my situation?