Are you newly self employed? You will need to upgrade to the Self Employed Online version to fill out schedule C. 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….
Pulication 334, Tax Guide for Small Business
Publication 535 Business Expenses
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.
PAYING QUARTERLY ESTIMATES
You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
The Sch C is part of your personal tax return, you do not file 2 returns.
And if you owe more than $1000 then there will be penalties & interest added to the balance. If you can, try to make a January estimated payment to reduce some of the penalties.