Self-Employed

Who is Self-Employed?

 
If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself self-employed and you would file Schedule C or Schedule C-EZ with your Form 1040. Not sure if you are self-employed or an employee? Refer to Independent Contractors vs. Employees.

Self-Employment Tax

If you are self-employed you must pay Self-Employment Tax

 
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

If you are self-employed you must pay Estimated Taxes

 
This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you don’t make quarterly payments you can be penalized for underpayment at the end of the tax year.

Filing and Paying Your Taxes Electronically

e-file for Business and Self-Employed Taxpayers

EFTPS: The Electronic Federal Tax Payment System

 
EFTPS is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7.