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New Member
posted Jun 1, 2019 2:09:45 PM

I worked for my self but did not pay myself from my earnings in 2018, do I need to file this year?

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2 Replies
Level 15
Jun 1, 2019 2:09:46 PM

Yes you do have to file

Level 15
Jun 1, 2019 2:09:48 PM

If you are self employed you have to file a return even if you don't have a profit.  And you don't pay yourself. The Net Profit or Loss is your personal income.

Self employed and Sole proprietors cannot take a withdrawal or salary and include it as an expense on their tax return. As a sole proprietor, you are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.  If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.