What Government Tax Forms Should I Use to File Self Employment Taxes?
Filing taxes for business is a lot like filing taxes for yourself, you need the right forms. If you’re self employed consider looking up the Schedule C, the Schedule SE and the schedule E (rental properties) tax forms.
Depending on your business of course, government tax forms vary, but if you are a lone entrepreneur the Schedule C will make a lot of sense. In short, you end up filing your business debts and profits alongside your personal tax expenses and income. Single member LLC’s for example are classified (for tax purposes) as a sole proprietor (this does not negate your corporate protection). The advantage here is that you are not taxed twice by the government, rather as one (with your own tax credits to utilize). The paper sums up costs of advertising, shipping and product purchases etc in an easy to use format (sales minus expenses).
What government Tax Forms do you think you need to “moonlight”? It’s the Schedule SE. If for example you work as a freelance auto mechanic, money earned over 400.00 would be applicable to self employment tax, of course subtracted for expenses (if any). This is the tax form you would use for a business that really isn’t a “business” and more of a part time affair you earn out of general employment (donating blood, or waiting tables at events for instance).
Schedule E’s are used to report profit and loss from rentals, and property management. It’s a two page document that spreads your property management business expenses and profit about similarly to a spreadsheet (including interest). It’s a relatively short form for house flippers and the like that encompasses daily expenses in an easy to read government tax forms.