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Tax Tips for the Self-Employed

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					 IRS Tax Tips                                                                     April 2, 2013

Useful Links:                Issue Number: IRS Tax Tip 2013-46
IRS.gov Home                 Inside This Issue
1040 Central

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                                Top Six Tax Tips for the Self-Employed
                             When you are self-employed, it typically means you work for yourself,
News Essentials              as an independent contractor, or own your own business. Here are six
                             key points the IRS would like you to know about self-employment and
What's Hot                   self-employment taxes:
News Releases
                             1. Self-employment income can include pay that you receive for part-
IRS - The Basics
                             time work you do out of your home. This could include income you
                             earn in addition to your regular job.
IRS Guidance
                             2. Self-employed individuals file a Schedule C, Profit or Loss from
Media Contacts               Business, or Schedule C-EZ, Net Profit from Business, with their Form
                             1040.
Facts & Figures
                             3. If you are self-employed, you generally have to pay self-
Problem Alerts               employment tax as well as income tax. Self-employment tax includes
                             Social Security and Medicare taxes. You figure this tax using Schedule
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                             SE, Self-Employment Tax.
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                             4. If you are self-employed you may have to make estimated tax
                             payments. People typically make estimated tax payments to pay taxes
                             on income that is not subject to withholding. If you do not make
The Newsroom Topics          estimated tax payments, you may have to pay a penalty when you file
                             your income tax return. The underpayment of estimated tax penalty
Tax Tips 2013                applies if you do not pay enough taxes during the year.

Radio PSAs                   5. When you file your tax return, you can deduct some business
                             expenses for the costs you paid to run your trade or business. You can
Fact Sheets                  deduct most business expenses in full, but some costs must be
                             ’capitalized.’ This means you can deduct a portion of the expense each
Armed Forces                 year over a period of years.
Disaster Relief              6. You may deduct only the costs that are both ordinary and necessary.
                             An ordinary expense is one that is common and accepted in your
Scams / Consumer Alerts      industry. A necessary expense is one that is helpful and appropriate for
                             your trade or business.
Tax Shelters
                              For more information, visit the Small Business and Self-Employed Tax
                              Center on the IRS website. There are three IRS publications that will
                              also help you. See Publications 334, Tax Guide for Small Business;
IRS Resources                 535, Business Expenses and 505, Tax Withholding and Estimated Tax.
                              All tax forms and publications are available on IRS.gov or by calling
Compliance & Enforcement News
                              800-TAX-FORM (800-829-3676).
Contact My Local Office

Filing Options               Additional IRS Resources:

Forms & Pubs                        Small Business and Self-Employed Tax Center
                                    Publication 334, Tax Guide for Small Business
Frequently Asked Questions          Publication 535, Business Expenses
                                    Publication 505, Tax Withholding and Estimated Tax
News                                Schedule C, Profit or Loss from Business
                                    Schedule C-EZ, Net Profit from Business
Taxpayer Advocate
                                    Schedule SE, Self-Employment Tax
                                    Form 1040-ES, Estimated Tax for Individuals
Where to File

                             IRS YouTube Videos:

                                    Estimated Tax Payments - English | Spanish | ASL

                             IRS Podcast:

                                    Estimated Tax Payments - Spanish

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Description: Top Six Tax Tips for the Self-Employed