{"id":6080,"date":"2025-01-01T15:00:00","date_gmt":"2025-01-01T12:00:00","guid":{"rendered":"https:\/\/workhy.com\/blog\/?p=6080"},"modified":"2024-12-31T16:22:59","modified_gmt":"2024-12-31T13:22:59","slug":"tax-forms-for-self-employed","status":"publish","type":"post","link":"https:\/\/workhy.com\/blog\/tax-forms-for-self-employed\/","title":{"rendered":"Tax forms for self-employed"},"content":{"rendered":"\n

Nearly everything about tax time as a self-employed worker can feel overwhelming. From complex forms to guidelines, it can feel like you\u2019re stuck navigating a seemingly endless maze. With a bit of expertise\u2014and a proven game plan\u2014you can more confidently navigate the process and learn how you might even be able to save more with the available deductions. Let\u2019s break it all down and help make sense of it.<\/p>\n\n\n\n

What is the self-employment tax?<\/h2>\n\n\n\n

By working for yourself, you\u2019ll be subject to one extra tax: the self-employment tax. Want to guess what it covers? Both Medicare and Social Security, which as an employee, are typically split with your employer. But because you are classified as your own employer, it becomes your responsibility to put money into these programs. As of 2023, that figure is 15.3% of your net earnings up to the first $160,200 of income and 2.9% for everything more than that.<\/p>\n\n\n\n

Duty aside, it\u2019s in your best interest to become clear on what you owe and why and how to manage it. Spend some time in advance preparing, and you\u2019ll be in better shape when the time comes.<\/p>\n\n\n\n

Do I need to pay the self-employment tax?\u00a0<\/h2>\n\n\n\n

Sure, if you pull in more than $400 as a self-employed earner. From freelancing to creating a small business to participating in a side hustle or even gig work, odds are that the answer is you are. And you should be aware.<\/p>\n\n\n\n

By having both a solid number and a record of what your expenses look like, there won\u2019t be any shock when the numbers are run. Seriously, do yourself a favor and check that status before you\u2019re on the hook.<\/p>\n\n\n\n

\"self<\/figure>\n\n\n\n

Self-employed IRS tax forms<\/h2>\n\n\n\n

Know your tax forms? That\u2019s one part of the equation. Here are the most important tax forms you need to know:<\/p>\n\n\n\n

    \n
  1. Form 1040<\/li>\n\n\n\n
  2. Schedule C<\/li>\n\n\n\n
  3. Schedule SE<\/li>\n\n\n\n
  4. Form 1099-MISC and Form 1099-NEC<\/li>\n\n\n\n
  5. Form 1040-ES<\/li>\n\n\n\n
  6. Form 8829
    <\/li>\n<\/ol>\n\n\n\n

    Form 1040<\/h3>\n\n\n\n

    Form 1040<\/a> is the tax form all taxpayers must fill out. This form documents all areas of income, deductions, and tax liability. Self-employed individuals will submit additional schedules and forms to accompany the 1040.<\/p>\n\n\n\n

    Schedule C<\/h3>\n\n\n\n

    Schedule C documents profit and loss. Self-employed individuals and single proprietors will use this form to designate their income and allow for deductions. This single form outlines the majority of your expenses and income, so your tax software will be pulling information from that document. You\u2019ll include your final profit from that document in your final 1040 form. This is what you\u2019ll use to calculate your estimated quarterly tax payments since one of the forms you can file with your tax return will need that information.<\/p>\n\n\n\n

    Schedule SE<\/h3>\n\n\n\n

    Schedule SE, Self-Employment Tax, is where you actually calculate the total self-employment tax owed. This tax form ensures you\u2019re paying into Social Security and Medicare based on your business net income. It\u2019s important to complete this form accurately so as to not underpay. Careful consideration when filling out Schedule SE can keep you from having financial situations arise.<\/p>\n\n\n\n

    Form 1099-MISC and Form 1099-NEC<\/h3>\n\n\n\n

    If you\u2019re an IC, those contracts should be sent directly to you by clients paying out $600 or more \u2014 they\u2019re essentially a snapshot of what you\u2019ve received. ICs must take these totals and report them on their schedule C. It\u2019s in your best interest to add to your record-keeping by making sure these documents are coming through in a timely fashion.<\/p>\n\n\n\n

    Form 1040-ES<\/h3>\n\n\n\n

    Form 1040-ES is how you will determine and then send in quarterly estimated taxes. Since no taxes are taken from self-employed dollars, upfront send-over payments keep you on track so you won\u2019t have to pay a lump sum at year-end. It shows financial responsibility and is forward-thinking.<\/p>\n\n\n\n

    Form 8829<\/h3>\n\n\n\n

    IRS Form 8829 is specifically where you can write off the costs associated with having a home office. This includes everything from your utilities to your maintenance. As long as the space is used entirely for work and you have a trustworthy evaluation of costs, you\u2019re in the game.<\/p>\n\n\n\n

    How to report the self-employment tax<\/h2>\n\n\n\n

    Figure out your net income by doing a Schedule C. Then, figure out the self-employment tax you owe by doing a Schedule SE. Third, input the numbers from the correct places on your 1040. Completing each step fully and accurately prevents snags later on when you\u2019re trying to lock down that refund.<\/p>\n\n\n\n

    As mentioned, there is software like TurboTax or H&R Block that you can use to guide you through each tax form. This can be helpful to save time and know you aren\u2019t leaving money on the table inadvertently.<\/p>\n\n\n\n

    Should I file estimated taxes?<\/h2>\n\n\n\n

    Yes, if you are going to owe more than $1000 for the year. They are due quarterly in April, June, September, and then January of the following year. Paying estimated taxes throughout the year helps you to fulfill your obligation as you earn and have income, rather than be surprised with an end-of-the-year bill.<\/p>\n\n\n\n

    Charting your path to tax success with Workhy<\/h2>\n\n\n\n

    Knowing more about your tax responsibility as a self-employed individual feels great. Once you know your forms and how to file them, you can walk in with certainty and ease. Of course, the best way to know you won\u2019t pay too much or miss a deduction is with the right software, tools, and resources.<\/p>\n\n\n\n

    When you take a proactive approach, you\u2019re prepared for whatever your entrepreneurial work throws your way. Contact us now to have an easy and time-saving tax process with Workhy’s<\/a> expert tax team.<\/p>\n\n\n\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\"New\n\t\t<\/a>\n\t\t<\/span>\n\t\t