This is such a great questions!!!
I first want to give you a few links that talk about Self employment.
Self employment tax
Self employment tax hub with calculator
Self Employment income and expenses
If the company is only a sole proprietorship (not a S or C corp or Partnership), then you would report his income and expenses on your regular tax return.
This information would go on the Schedule C and flow to the 1040. You will enter it as Self Employment Income. The expenses will be entered in this section as well.
Please look over the SE employment Tax link because a lot of people do not realized that you will need to pay Social Security and Medicare taxes on any net income from the business.
If you have a profit, then you might have some taxes due for this business. You can either send in estimated taxes (see the links above) or change your W4 from your W2 income and add a bit more withholdings to that instead.
Hope that is clear. You can also reach out to us while you are doing your taxes and we can show you exactly where and how to enter Self Employment income and expenses. This link shows you where this is located in the Turbo Tax software.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/report-income-self...
Please reach out again if you have other questions!!
Katie S.
Katherine S 63
