Great. I have the Home & Business version too on Windows.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. The SE tax is to pay both the Social Security and Medicare tax that wasn't taken out like on a W2 job.
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 (If it is 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 (FICA). So you get social security credit for it when you retire. It is in addition to any regular income tax you owe on it.
For the Home & Business Desktop program…..
Go to Business tab-Continue. Then pick I'll choose what I work on
First item, Business Income and Expenses click Start or Update
Profit or Loss from Business, click Start or Update.
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.
