Sec alarm company SM LLC. How to show income and deduction? Example I bought cameras for $100. Sold for 150 plus install 50. sales tax 0.0825 (16.5) Total charge 216.5.

[olegkomliev]

After that I payed $16.5 to the state quarterly. Which amount I should show in self-employed income if my check was for $216.5? The whole amount of the check and then miscellaneous deduction 100 16.5=116.5. Or only income 50 50=100?  Please help.

[MinhT1]

In your example, you would report:

Income: $216.50

Expenses: Supplies: $100  and Taxes $16.50

giving you a net self-employed income of $100

[olegkomliev]

Thank you

[VolvoGirl]

Are you filing your Single Member LLC on Schedule C as self employment?  Or did you elect to be a S Corp?

Here's some info on self employment.  Do you need any help filling out the Schedule C?

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 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.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf