Some general info......
If you have Self Employment income you have to file a schedule C in your personal 1040 return. You may get a 1099Misc for some of your income but you need report all your income. So you need to keep your own good records.
Here is some 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>
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. You pay 15.3% for 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.
There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return....
<a rel="nofollow" target="_blank" href="
http://quickbooks.intuit.com/self-employed">http://quickbooks.intuit.com/self-employed</a>
HOW TO ENTER IT
Fill out Schedule C here in the Home & Business version:
The Business Tab - Continue
I'll choose what I work on
Business Income and Expenses
Then….
Profit or Loss from Business, click Start or Update
You use your own name 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 you put in your income and expenses if your net profit is $400 or more you will pay 15.3% Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.
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.
