• Teaser
  • Teaser
  • Teaser
  • Teaser
  • Where your Financials are Done Right!

    Getting More Return on Your Return!
  • Strategic Solutions - Driving Results!

    Progressive Approaches - Precision Response!
  • Strength in Numbers

    Time is Money - We'll Help you Save Both!
  • Your Financials - Our Profession!

    Your Growth - Our Success!

Self Employed Individuals - FAQs

If you own your own business and are considered self-employed, there are certain obligations which need to be met so that you file your taxes properly and promptly. There are often questions that are asked by self-employed individuals in regards to their tax obligation. The following FAQs will provide you with the answers to the most common questions. You can also contact Tax Force Inc for additional information about any specific questions that you may have.

Q: Am I self-employed?

A: You are considered to be self-employed if you are an independent contractor, sole proprietor or a member of a partnership in any business or trade. Even if you are operating a part-time business, you can be considered self-employed.

Q: What are my tax obligations as a self-employed individual?

A: You will need to file an annual tax return but you may also need to pay quarterly taxes that are estimated. In addition, a self-employment tax needs to be paid which covers Medicare and Social Security for individuals who work for themselves. You must compute your net profit and loss to determine if it is necessary to pay income tax and self-employment tax. The experts at Tax Force Incorporated can assist you with this process.

Q: How are quarterly payments made?

A: Form 1040-ES is necessary to determine if you must pay Medicare and Social Security taxes. There is a worksheet on that form which is similar to what is available on form 1040. When using that worksheet, you will be able to determine if it is necessary to pay the estimated quarterly tax.

Q: How is my annual return filed?

A: Typically, the annual return for a self-employed individual is either Schedule C or Schedule C-EZ, in the case of small businesses that have expenses of less than $5000. Schedule SE will be used to report your Medicare and Social Security taxes.

Q: Do I need to file an information return?

A: Although it depends upon each individual case, it is likely that you will need to file an information return with the IRS.

Q: What can I take for a home office deduction?

A: When you own your own business and use part of your home exclusively for that business, you can deduct expenses on your taxes. This is true for both homeowners and renters.

Q: Which Business Structure Should I Consider?

A: There are a number of different types of business structures available, each which has its own benefits and limitations. The most common types of businesses are Sole Proprietorship, Corporations, S Corporation, Limited Liability Companies and Partnerships.

Q: Can I start a joint venture with my spouse?

A: There may be different tax regulations when a husband and wife start a business together. It is best if you contact a tax professional for assistance in this regard.

Q: Where can I find answers to other questions?

A: If you have any tax questions or would like assistance in filing your taxes properly, you can contact the professionals at Tax Force Inc We would be happy to assist you with any questions that you may have.

Mailing Address

Silicon Valley Offices
7052 Santa Teresa Blvd. #305
San Jose, CA 95139
TEL: (408)912-7692
FAX: (877)229-5269
 
Ohio Valley Offices
9219 US Hwy 42 #D-293
Prospect, KY 40059
TEL: (502)709-7879
FAX: (877)229-5269
 
Write Us:
This email address is being protected from spambots. You need JavaScript enabled to view it.
 
 

 

 

 

 

 

 

 



Latest Tweet

Mailing List

Please take a moment to sign up for email updates. We will make sure you are the first to hear latest news.
tax-yelp-reviews2
request free consultation