The required tax form for self-employed individuals is Form 1040, according to the IRS. Different sections are filled out for self-employed persons as opposed to someone employed by someone else. Depending on the situation, the individual might need the standard 1040, 1040EZ or 1040ES.Continue Reading
Self-employed people must pay standard income tax and self-employment tax, says the IRS; self-employment tax is for benefits such as Medicare and Social Security. This is done by filling out the Form 1040.
Not all self-employed people file the self-employment tax, notes the IRS. This is determined by the person's net profit and net loss. It can be calculated based on the business income for the previous year. The rule for income tax is that anyone self-employed who earned more than $400 the previous year needs to file, as of January 2016. If the income was less than $400, filing depends on other requirements, which are listed on the 1040 form.
Form 1040 ES is for people who want to figure out their estimated taxes for the next quarter or year, states the IRS. This includes a worksheet to figure out what they might owe the following year. It helps people determine if they should file annually or quarterly. Someone filing annually fills out Schedule C on Form 1040 or Schedule C-EZ on Form 1040 EZ. This section is for earnings related to being self-employed, instead of from a salaried job.Learn more about Taxes