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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I opened my own craft business in 09 and did not work for any

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I opened my own craft business in 09 and did not work for any other employers. So I am wondering should I 1099 myself from my business so on my personal taxes I will have earned income?

You do not need to issue any form to yourself.

You simply report all your business income on the schedule C - http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You will also report all your business expenses and calculate net business income on that schedule.

Your net business income is a subject of self-employment tax - calculated on the schedule SE - http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

These forms are added to your tax return - form 1040 - http://www.irs.gov/pub/irs-pdf/f1040.pdf

Net business income is reported on the line 12.

Let me know if you need any help with reporting.

Customer: replied 6 years ago.
What if I want to qualify for EIC? Or will I not because I am selfemployed now?

Yes - self-employment income is earned income and will qualify you for earned income credit.

To calculate the credit - use the schedule EIC - http://www.irs.gov/pub/irs-pdf/f1040sei.pdf

Let me know if you need help with reporting.

 

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