Self-Employment Tax Responsibilities
United States tax laws are very complex and quite confusing, often leading individuals and businesses to unknowingly make mistakes when filing their taxes with the IRS. If you are a sole proprietor, independent contractor, a member of a business partnership, or are otherwise self-employed, you will have particular guidelines for filing taxes.
Unfortunately, the complex laws regarding self-employment all too often cause people to face tax problems. The tax relief lawyers of the Tax Relief Law Center may be able to help you if your small business or independent trade is facing scrutiny from the IRS. Fill out the contact form above to see what our legal team can do for you.
Obligations for Self-Employed Individuals
People who are self-employed have to file an annual return and pay an estimated tax quarterly. However, these are subject to the particular conditions of the individual’s business, such as the net profit and loss of the business. A few stipulations which govern the applicability of self-employment tax and income tax are as follows:
- Self-employment tax (SE tax) – Refers to Social Security and Medicare taxes applied to self-employed individuals, much like most wage earners
- Net profit versus net loss – Subtracting businesses expenses from business income.
- Income tax return – Required if your earnings from self-employment are over $400.00 and may or may not be required if they are under $400.00.
If you are unsure of whether your small business qualifies for SE tax and income tax, there are professional tax lawyers who can help you determine the most accurate way to file your taxes.
If you are self-employed and need assistance dealing with the IRS or if you have more questions about SE tax and income tax, contact a tax attorney at the Tax Relief Law Center today by completing the contact form listed above.