How to File Self-Employment Taxes

If you are self-employed, you should know how to file self-employment taxes. Besides knowing what forms and deadlines you need to meet, you should also know about exemptions. An accountant can help you navigate the tax laws pertaining to self-employment and help you minimize your taxable income. They will look for deductions specific to your organization as well as general deductions that apply to all businesses. Attorneys can also help you by reviewing the legal aspects of self-employment.

Form 1040-ES

Self-Employment tax Form 1040-ES provides information for self-employed people on how to calculate their estimated taxes. The form also contains special exemptions and payment deadlines. The form comes with a detailed worksheet that helps self-employed individuals calculate their taxes line by line, factoring in any deductions.

You can fill out the 1040-ES online at the IRS website. However, if you’re not comfortable filling out the form online, you can also download the form and fill it out digitally. When filing your 1040-ES, make sure to fill out your Estimated Tax Worksheet, as well. After filling out the form, you can either pay it online or send it through the snail mail.

Exemptions from self-employment tax

Exemptions from self-employment tax are available for a variety of circumstances. For example, members of certain religious orders are exempt from paying self-employment taxes while performing duties connected to their faith. Likewise, practitioners of Christian Science are exempt from filing self-employment taxes because they elect not to participate in Social Security. The religious order must provide an exemption certificate on Form 4361, indicating that they object to public insurance.

In addition to the self-employment tax, self-employed individuals can claim wages from their jobs as part of their self-employment income. This deduction is included on Schedule I of Form 1040 and is not subtracted from business income. However, self-employed individuals who earn $142,800 or more will not be subject to Social Security tax on net self-employment income. Self-employed individuals may be an independent contractor or unincorporated. While the SE tax deduction has no limit, the Medicare tax is calculated separately and added to the amount of tax owed.

Estimated tax payments

Estimated tax payments for self-employment can help you avoid a large tax bill at tax time. Estimated tax payments are required by the IRS if your earnings are more than a certain amount in any given year. If you make less than that, you don’t have to make estimated tax payments.

If you work as a freelancer, you may receive several 1099 forms from different employers. In some cases, you may not receive any 1099 forms at all. If so, you must factor all of your self-employed income into your estimated tax payments. You may also need to file other IRS forms, depending on the type of business entity you operate. For example, if you are a sole proprietor or an owner of an LLC or a shareholder in an S corporation, you will need to file Form 1040-ES.


If you have self-employment income, you may have to pay self-employment tax. This tax can be paid online, by mail, or through a tax professional. Generally, the best method is to pay through the Electronic Federal Tax Payment System (EFTPS). This service is free and lets you pay your taxes electronically. In addition to paying self-employment taxes, you can also pay your income tax through EFTPS.

Self-employed people who earn more than $400 in a taxable year must pay self-employment tax. However, they may be able to deduct half of their self-employment taxes. This is because half of the amount you pay goes towards Social Security and Medicare. Other taxes, such as state or local taxes, cannot be deducted.

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