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Level 1
October 25, 2023
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Self employment

  • October 25, 2023
  • 2 replies
  • 35 views

Hi

 

How do I report my new business income and expenses?

 

Ronnie

    Best answer by VolvoGirl

    You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

     

    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% for 2013  Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

     

    You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Premium or Self Employed version.

     

    How to enter income from Self Employment

    https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

     

    Where to enter expenses in the Online Self Employed version

    https://ttlc.intuit.com/questions/3636848-where-do-i-enter-my-self-employment-business-expenses-like-home-office-vehicle-mileage-and-supplies

     

    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

     

    You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax.  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.  

    2 replies

    VolvoGirl
    VolvoGirlAnswer
    Level 15
    October 25, 2023

    You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

     

    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% for 2013  Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

     

    You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Premium or Self Employed version.

     

    How to enter income from Self Employment

    https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

     

    Where to enter expenses in the Online Self Employed version

    https://ttlc.intuit.com/questions/3636848-where-do-i-enter-my-self-employment-business-expenses-like-home-office-vehicle-mileage-and-supplies

     

    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

     

    You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax.  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.  

    VolvoGirl
    Level 15
    October 25, 2023

    And You must make quarterly estimated tax payments for the current tax 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 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 16, 2024.  Your state will also have their own estimate forms.

     

    Here are the blank Estimates and instructions…..

    http://www.irs.gov/pub/irs-pdf/f1040es.pdf

     

    Or you can pay directly on the IRS website https://www.irs.gov/payments

    Be sure to pick the right kind of payment and year.....2023 Estimate