IRS Tax Tips April 2, 2013
Useful Links: Issue Number: IRS Tax Tip 2013-46
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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:
1. Self-employment income can include pay that you receive for part-
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time work you do out of your home. This could include income you
earn in addition to your regular job.
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
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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.
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.
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
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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
Schedule SE, Self-Employment Tax
Form 1040-ES, Estimated Tax for Individuals
Where to File
IRS YouTube Videos:
Estimated Tax Payments - English | Spanish | ASL
Estimated Tax Payments - Spanish
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