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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I have questions about Schedule C.

Customer Question

I have questions about Schedule C.
Submitted: 11 months ago.
Category: Tax
Expert:  Arthur Rubin replied 11 months ago.

Your requested expert doesn't seem to be online at the moment. However, I'm sure he would want a more specific question than "I have questions about Schedule C", so it would be a good idea for youto add more material.

Expert:  Lev replied 11 months ago.

So if you run a business as a solo proprietor - there would not be any difference for income tax purposes, but the owner will be taxed on net business profit - and will be subject to both - income and self-employment tax.

You will report your income and may deduct qualified expenses.- you may report all business income and expenses -

on the schedule C -

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

The net income (after deductions) will be reported on the form 1040 line 12 -

http://www.irs.gov/pub/irs-pdf/f1040.pdf

If the business has net income over $400, it may be required to file Schedule SE, Self-Employment Tax

http://www.irs.gov/pub/irs-pdf/f1040se.pdf

and net self-employment income is subject to 15.3% self-employment tax.

Self-employment taxes from schedule SE will go to the form 1040 line 57 -

http://www.irs.gov/pub/irs-pdf/f1040.pdf

Also - you will deduct half of self-employment taxes on the line 27.

Generally - that all you needs tax purposes.

Please review all possible deductions - that might help to reduce income tax liability.

Any questions?

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