Are You Self-Employed?

Photo by Brooke Lark on Unsplash

Yes, you are if you are in business for yourself, even if it’s only a part-time job and you are a sole proprietor or an independent contractor.

Generally a self-employed individual is required to file an annual return and sometimes pay estimated tax every quarter.

To determine if you have to pay self-employment tax and income tax, you should calculate net profit from your business. Make sure you follow your bookkeeping records - subtract your business expenses from your business income. If your net earnings from self-employment were $400 or more, you will need to file an income tax return.To report income or loss from a business use Schedule C or let us know how we can help you.