You are self employedi have to figure out what your net income is after taxes and social security is there an easy way to do this?

Answer 1

If you you have your good books and records that you are supposed to have as a self employed business operator it would not be too hard to do.

The first thing is determining your net profit on the schedule C of the 1040 income tax return before you can determine the amount of your self employment taxes on the schedule SE of the 1040 income tax form and then the 1040 to determine the amount of your income taxes.

You will need to report that income, and any related expenses, on Form 1040, Schedule C, Profit or Loss from the Business operation, or you may qualify to use Form 1040, Schedule C-EZ, TO determine your Net Profit from the Business operation. You will also need to use the Form 1040, Schedule SE, Self Employment Tax form to compute and report your social security and Medicare tax on the net profit from the business operation.

For instructions and forms go to the IRS.gov web site and use the search box for publication 334 a very good place to start with examples

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the IRS.gov web site for Small Business and Self-Employed Tax Center

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