What Is the Tax Rate for 1099 Income in 2024?

Are you navigating the world of 1099 income and wondering about the tax implications for 2024? Understanding the tax rate for 1099 income is crucial for independent contractors and freelancers aiming to optimize their financial strategies; income-partners.net can help you understand these tax implications and find strategic partnerships to boost your income. Let’s delve into the specifics of self-employment tax, deductions, and how to manage your tax obligations effectively. Explore effective tax planning, financial partnerships, and freelance tax to maximize your earnings.

1. Understanding the 1099 Income Tax Rate in 2024

What is the tax rate for 1099 income in 2024? The self-employment tax rate for 2024 is 15.3%, comprising 12.4% for Social Security and 2.9% for Medicare, applicable to the first $168,600 of combined earnings; this guide will detail how this tax applies to your 1099 income, ensuring you are well-prepared for your tax obligations.

1.1 Breaking Down the 15.3% Self-Employment Tax Rate

The 15.3% self-employment tax rate is a combination of two components: 12.4% for Social Security and 2.9% for Medicare. This tax applies to your net earnings from self-employment, which is the profit you make from your business after deducting business expenses.

Social Security Tax (12.4%)

The Social Security portion of the self-employment tax is capped at a certain income level each year. For 2024, this limit is $168,600. This means that only the first $168,600 of your combined wages, tips, and net earnings is subject to the 12.4% Social Security tax. If you also have wages or tips from an employer that are subject to Social Security tax, those amounts count toward this limit.

Medicare Tax (2.9%)

The Medicare portion of the self-employment tax does not have an income limit. This means that all of your net earnings from self-employment are subject to the 2.9% Medicare tax, regardless of how high your income is.

1.2 Additional Medicare Tax

In addition to the 2.9% Medicare tax, you may also be subject to an additional 0.9% Medicare Tax if your income exceeds certain thresholds. This additional tax applies to single filers with income over $200,000 and married couples filing jointly with income over $250,000.

Filing Status	Threshold Amount
Married Filing Jointly	$250,000
Married Filing Separately	$125,000
Single	$200,000
Head of Household	$200,000
Qualifying Surviving Spouse	$200,000

1.3 Understanding Net Earnings

Net earnings from self-employment are calculated by subtracting your business expenses from your gross income. You report your business income and expenses on Schedule C (Form 1040), Profit or Loss from Business.

To calculate your net earnings, you’ll need to keep accurate records of all your income and expenses. Common business expenses include:

Office supplies
Business travel
Home office deduction
Advertising and marketing
Professional fees

1.4 How to Calculate Self-Employment Tax

To calculate your self-employment tax, you’ll use Schedule SE (Form 1040), Self-Employment Tax. Here’s a step-by-step guide:

Calculate Your Net Earnings: Determine your net earnings from self-employment by subtracting your business expenses from your gross income.
Multiply by 92.35%: Multiply your net earnings by 0.9235 (92.35%). This adjustment accounts for the fact that employees don’t pay Social Security and Medicare taxes on the employer’s share of those taxes.
Calculate Social Security Tax: If your net earnings multiplied by 92.35% are less than $168,600 (for 2024), multiply that amount by 12.4% to determine your Social Security tax. If your earnings exceed $168,600, the Social Security tax is capped at $168,600 x 0.124.
Calculate Medicare Tax: Multiply your net earnings (before the 92.35% reduction) by 2.9% to determine your Medicare tax.
Add Social Security and Medicare Taxes: Add the Social Security tax and Medicare tax together to get your total self-employment tax.

1.5 Resources for Further Reading

IRS Publication 334, Tax Guide for Small Business
IRS Schedule SE (Form 1040), Self-Employment Tax
income-partners.net for partnership opportunities

2. Who Pays Self-Employment Tax on 1099 Income?

Who is required to pay self-employment tax on 1099 income? Individuals earning $400 or more in net earnings from self-employment are required to pay self-employment tax and file Schedule SE with their income tax return; understanding who is responsible for paying this tax is the first step in ensuring compliance.

2.1 Understanding the $400 Threshold

The IRS requires anyone with net earnings from self-employment of $400 or more to pay self-employment tax. This threshold applies regardless of your age or whether you are already receiving Social Security or Medicare benefits.

Why $400?

The $400 threshold is in place to avoid the administrative burden of collecting small amounts of self-employment tax from individuals with minimal earnings. If your net earnings are below $400, you are not required to file Schedule SE or pay self-employment tax.

2.2 Common Scenarios for Self-Employment Tax

Many different types of workers are subject to self-employment tax. Here are some common scenarios:

Freelancers and Independent Contractors: If you provide services to clients as a freelancer or independent contractor, you are likely subject to self-employment tax on your earnings.
Sole Proprietors: If you operate a business as a sole proprietor, you are responsible for paying self-employment tax on the profits from your business.
Partners in a Partnership: If you are a partner in a partnership, you are subject to self-employment tax on your share of the partnership’s net earnings.
Members of an LLC: If you are a member of a limited liability company (LLC) that is treated as a sole proprietorship or partnership for tax purposes, you are subject to self-employment tax on your share of the company’s profits.

2.3 Exceptions to Self-Employment Tax

While most self-employed individuals are required to pay self-employment tax, there are a few exceptions. Some of the most common exceptions include:

Certain Religious Workers: Members of certain religious orders who have taken a vow of poverty may be exempt from self-employment tax.
Employees of Foreign Governments: Individuals who work for a foreign government or international organization may be exempt from self-employment tax.

2.4 Family Caregivers and Self-Employment Tax

Family caregivers who provide in-home services to elderly or disabled individuals may be considered employees of the individuals they care for. If the elderly or disabled individual has the right to tell the caregiver what needs to be done, the caregiver is typically classified as an employee rather than an independent contractor. In this case, the caregiver is not subject to self-employment tax, but rather to Social Security and Medicare taxes withheld from their wages. For more details, refer to Publication 926, Household Employer’s Tax Guide.

2.5 Resources for Determining Your Status

If you are unsure whether you are subject to self-employment tax, here are some resources that can help:

IRS Publication 15-A, Employer’s Supplemental Tax Guide
IRS Topic 762, Independent Contractor vs. Employee
income-partners.net for tax and partnership advice

3. Deductions and Credits for 1099 Income Tax

What deductions and credits can I claim to reduce my 1099 income tax liability? Self-employed individuals can take advantage of various deductions and credits, such as the self-employment tax deduction and the qualified business income (QBI) deduction, to lower their tax bill; these deductions can significantly reduce your taxable income.

3.1 Self-Employment Tax Deduction

One of the most significant deductions available to self-employed individuals is the self-employment tax deduction. You can deduct one-half of your self-employment tax from your gross income. This deduction is taken on Form 1040, U.S. Individual Income Tax Return, and it reduces your adjusted gross income (AGI).

How the Deduction Works

The self-employment tax deduction is designed to put self-employed individuals on a more equal footing with employees. Employees do not pay Social Security and Medicare taxes on the employer’s share of those taxes, while self-employed individuals do. The self-employment tax deduction helps to offset this difference.

Calculating the Deduction

To calculate the self-employment tax deduction, you’ll first need to determine your self-employment tax using Schedule SE. Once you have calculated your self-employment tax, you can deduct one-half of that amount on Form 1040.

3.2 Qualified Business Income (QBI) Deduction

The Qualified Business Income (QBI) deduction is another valuable tax break for self-employed individuals. This deduction allows eligible self-employed individuals to deduct up to 20% of their qualified business income.

Eligibility for the QBI Deduction

To be eligible for the QBI deduction, you must have qualified business income from a trade or business. Qualified business income is generally defined as the net amount of income, gains, deductions, and losses from your business. Certain types of income, such as capital gains and losses, are not considered qualified business income.

Calculating the QBI Deduction

The QBI deduction is subject to certain limitations based on your taxable income. For 2024, the QBI deduction is limited to the lesser of:

20% of your qualified business income, or
20% of your taxable income (excluding capital gains)

If your taxable income exceeds certain thresholds ($191,950 for single filers and $383,900 for married couples filing jointly in 2024), the QBI deduction may be further limited.

Specified Service Trades or Businesses (SSTBs)

If you are engaged in a specified service trade or business (SSTB), such as law, accounting, or consulting, the QBI deduction may be limited or unavailable if your taxable income exceeds certain thresholds.

3.3 Other Common Business Deductions

In addition to the self-employment tax deduction and the QBI deduction, there are many other business deductions available to self-employed individuals. Some of the most common business deductions include:

Home Office Deduction: If you use a portion of your home exclusively and regularly for business, you may be able to deduct expenses related to that portion of your home.
Business Expenses: You can deduct ordinary and necessary expenses related to your business, such as office supplies, business travel, advertising, and professional fees.
Health Insurance Deduction: Self-employed individuals can deduct the amount they paid in health insurance premiums for themselves, their spouses, and their dependents.
Retirement Plan Contributions: You can deduct contributions you make to a self-employed retirement plan, such as a SEP IRA or SIMPLE IRA.

3.4 Tax Credits for Self-Employed Individuals

In addition to deductions, there are also several tax credits available to self-employed individuals. Tax credits directly reduce your tax liability, making them even more valuable than deductions. Some of the most common tax credits for self-employed individuals include:

Earned Income Tax Credit (EITC): If you have low to moderate income, you may be eligible for the Earned Income Tax Credit (EITC).
Child Tax Credit: If you have qualifying children, you may be able to claim the Child Tax Credit.

3.5 Resources for Tax Planning

IRS Publication 505, Tax Withholding and Estimated Tax
IRS Publication 535, Business Expenses
income-partners.net for finding tax-savvy partners

4. Paying 1099 Income Tax: Estimated Taxes

How do I pay my 1099 income tax? Self-employed individuals are typically required to pay estimated taxes quarterly to cover their income tax and self-employment tax obligations; this ensures you meet your tax obligations throughout the year.

4.1 Understanding Estimated Taxes

Estimated taxes are payments you make to the IRS throughout the year to cover your income tax and self-employment tax obligations. Unlike employees, who have taxes withheld from their paychecks, self-employed individuals are responsible for paying their taxes directly to the IRS.

Who Needs to Pay Estimated Taxes?

Generally, you need to pay estimated taxes if you expect to owe at least $1,000 in taxes for the year. This includes both income tax and self-employment tax.

When Are Estimated Taxes Due?

Estimated taxes are typically due on the following dates:

April 15
June 15
September 15
January 15 of the following year

If any of these dates fall on a weekend or holiday, the due date is shifted to the next business day.

4.2 Calculating Estimated Taxes

To calculate your estimated taxes, you’ll need to estimate your income and deductions for the year. This can be challenging, especially if your income fluctuates or if you have significant business expenses.

Using Form 1040-ES

The IRS provides Form 1040-ES, Estimated Tax for Individuals, to help you calculate your estimated taxes. This form includes worksheets and instructions to guide you through the process.

Safe Harbor Methods

If estimating your income and deductions is difficult, you can use one of the safe harbor methods to avoid penalties for underpayment of estimated taxes. The safe harbor methods allow you to base your estimated tax payments on your prior year’s tax liability.

Safe Harbor #1: 100% of Prior Year’s Tax

Under this method, you can avoid penalties if you pay at least 100% of the tax shown on your prior year’s tax return. This method is particularly helpful if your income is similar from year to year.

Safe Harbor #2: 110% of Prior Year’s Tax

If your adjusted gross income (AGI) on your prior year’s tax return was more than $150,000 ($75,000 if married filing separately), you must pay at least 110% of the tax shown on your prior year’s tax return to qualify for this safe harbor.

4.3 Paying Estimated Taxes

There are several ways to pay your estimated taxes:

Electronic Funds Withdrawal: You can pay your estimated taxes directly from your bank account using the IRS’s Electronic Federal Tax Payment System (EFTPS).
Credit Card or Debit Card: You can pay your estimated taxes online or by phone using a credit card or debit card.
Check or Money Order: You can pay your estimated taxes by mail using a check or money order.

4.4 Avoiding Penalties for Underpayment

To avoid penalties for underpayment of estimated taxes, it’s important to pay enough tax throughout the year. You can avoid penalties by:

Paying at least 90% of your current year’s tax liability, or
Paying 100% of your prior year’s tax liability (110% if your AGI was over $150,000)

If you fail to pay enough tax throughout the year, you may be subject to penalties.

4.5 Resources for Estimated Taxes

IRS Form 1040-ES, Estimated Tax for Individuals
IRS Publication 505, Tax Withholding and Estimated Tax
income-partners.net for financial planning

5. Common Mistakes to Avoid with 1099 Income Tax

What are some common mistakes to avoid when dealing with 1099 income tax? Many self-employed individuals make common mistakes, such as not keeping accurate records, failing to pay estimated taxes, and not claiming all eligible deductions; avoiding these pitfalls can save you time and money.

5.1 Not Keeping Accurate Records

One of the most common mistakes is failing to keep accurate records of income and expenses. Without proper records, it can be difficult to calculate your net earnings and claim all eligible deductions.

Best Practices for Record-Keeping

Separate Business and Personal Finances: Keep your business and personal finances separate to make it easier to track your income and expenses.
Use Accounting Software: Consider using accounting software like QuickBooks or Xero to track your income and expenses.
Keep Receipts: Save all receipts for business expenses, and organize them in a way that makes it easy to find them when you need them.

5.2 Failing to Pay Estimated Taxes

Another common mistake is failing to pay estimated taxes throughout the year. This can result in penalties for underpayment of estimated taxes.

Tips for Paying Estimated Taxes

Calculate Your Estimated Taxes: Use Form 1040-ES to estimate your tax liability for the year.
Set Up a Payment Schedule: Set up a schedule for paying your estimated taxes on time.
Use EFTPS: Use the IRS’s Electronic Federal Tax Payment System (EFTPS) to make your estimated tax payments.

5.3 Not Claiming All Eligible Deductions

Many self-employed individuals miss out on valuable deductions, such as the home office deduction, business expenses, and the self-employment tax deduction.

Tips for Claiming Deductions

Review IRS Publications: Review IRS publications like Publication 535, Business Expenses, to learn about eligible deductions.
Consult a Tax Professional: Consider consulting a tax professional to ensure you are claiming all eligible deductions.
Keep Detailed Records: Keep detailed records of all business expenses to support your deduction claims.

5.4 Misclassifying Workers

Some businesses may misclassify workers as independent contractors rather than employees to avoid paying employment taxes. This can have serious consequences for both the business and the worker.

Understanding Worker Classification

Control: If the business has the right to control what work is done and how it is done, the worker is likely an employee.
Financial Control: If the business controls the financial aspects of the worker’s job, such as how they are paid and reimbursed for expenses, the worker is likely an employee.
Relationship: If there is a continuing relationship between the worker and the business, the worker is likely an employee.

5.5 Ignoring Changes in Tax Law

Tax laws can change frequently, so it’s important to stay up-to-date on the latest changes. Ignoring changes in tax law can lead to mistakes and penalties.

Staying Informed

Subscribe to IRS Updates: Subscribe to IRS email updates to stay informed about changes in tax law.
Consult a Tax Professional: Consult a tax professional to get personalized advice and stay up-to-date on the latest tax changes.
Follow Tax News: Follow reputable tax news sources to stay informed about changes in tax law.

5.6 Resources for Avoiding Mistakes

IRS Publication 334, Tax Guide for Small Business
IRS Publication 505, Tax Withholding and Estimated Tax
income-partners.net for expert advice

6. Strategies to Minimize 1099 Income Tax

What strategies can I use to minimize my 1099 income tax? Effective tax planning, including maximizing deductions, contributing to retirement accounts, and strategically timing income and expenses, can help minimize your 1099 income tax liability; here are proven strategies to reduce your tax burden.

6.1 Maximize Deductions

One of the most effective ways to minimize your 1099 income tax is to maximize your deductions. The more deductions you claim, the lower your taxable income will be.

Common Deductions to Consider

Home Office Deduction: If you use a portion of your home exclusively and regularly for business, you may be able to deduct expenses related to that portion of your home.
Business Expenses: You can deduct ordinary and necessary expenses related to your business, such as office supplies, business travel, advertising, and professional fees.
Health Insurance Deduction: Self-employed individuals can deduct the amount they paid in health insurance premiums for themselves, their spouses, and their dependents.
Self-Employment Tax Deduction: You can deduct one-half of your self-employment tax from your gross income.
Qualified Business Income (QBI) Deduction: Eligible self-employed individuals can deduct up to 20% of their qualified business income.

6.2 Contribute to Retirement Accounts

Contributing to retirement accounts is another effective way to minimize your 1099 income tax. Contributions to retirement accounts are typically tax-deductible, which can lower your taxable income.

Types of Retirement Accounts

SEP IRA: A Simplified Employee Pension (SEP) IRA is a retirement plan for self-employed individuals and small business owners. Contributions to a SEP IRA are tax-deductible, and earnings grow tax-deferred.
SIMPLE IRA: A Savings Incentive Match Plan for Employees (SIMPLE) IRA is another retirement plan option for self-employed individuals and small business owners. Contributions to a SIMPLE IRA are also tax-deductible, and earnings grow tax-deferred.
Solo 401(k): A solo 401(k) is a retirement plan designed for self-employed individuals and small business owners with no employees other than themselves and their spouse. A solo 401(k) allows for both employee and employer contributions, which can result in higher contribution limits than SEP IRAs or SIMPLE IRAs.

6.3 Strategically Time Income and Expenses

Strategically timing your income and expenses can also help minimize your 1099 income tax. By carefully planning when you receive income and when you pay expenses, you may be able to lower your tax liability.

Defer Income

If possible, defer income to the following year. This can be achieved by delaying invoicing clients or postponing projects until the new year.

Accelerate Expenses

Accelerate expenses by paying for deductible expenses before the end of the year. This can include purchasing office supplies, paying for business travel, or making contributions to retirement accounts.

6.4 Consider Incorporating

Depending on your circumstances, it may be beneficial to incorporate your business. Incorporating can provide certain tax advantages, such as the ability to deduct certain expenses that are not deductible for sole proprietors.

Types of Business Structures

S Corporation: An S corporation is a type of corporation that passes its income, losses, deductions, and credits through to its shareholders. This can help you avoid double taxation, as the corporation itself is not subject to income tax.
C Corporation: A C corporation is a type of corporation that is subject to income tax at the corporate level. While this can result in double taxation, it may also provide certain tax advantages, such as the ability to deduct certain expenses that are not deductible for sole proprietors.

6.5 Take Advantage of Tax Credits

In addition to deductions, there are also several tax credits available to self-employed individuals. Tax credits directly reduce your tax liability, making them even more valuable than deductions.

Common Tax Credits

Earned Income Tax Credit (EITC): If you have low to moderate income, you may be eligible for the Earned Income Tax Credit (EITC).
Child Tax Credit: If you have qualifying children, you may be able to claim the Child Tax Credit.

6.6 Resources for Tax Minimization

IRS Publication 505, Tax Withholding and Estimated Tax
IRS Publication 535, Business Expenses
income-partners.net for strategic partnerships

Tax Planning Strategies for 1099 Income

7. The Impact of Tax Reform on 1099 Income

How has tax reform affected 1099 income? Recent tax reforms, such as the Tax Cuts and Jobs Act (TCJA), have significantly impacted 1099 income, affecting deductions, credits, and overall tax liability for self-employed individuals; staying informed about these changes is crucial for effective tax planning.

7.1 Key Changes from the Tax Cuts and Jobs Act (TCJA)

The Tax Cuts and Jobs Act (TCJA), enacted in 2017, brought significant changes to the tax code, including provisions that affect self-employed individuals and those with 1099 income.

Qualified Business Income (QBI) Deduction

One of the most significant changes introduced by the TCJA was the Qualified Business Income (QBI) deduction. This deduction allows eligible self-employed individuals to deduct up to 20% of their qualified business income.

Eligibility for the QBI Deduction

Limitations on the QBI Deduction

The QBI deduction is subject to certain limitations based on your taxable income. For 2024, the QBI deduction is limited to the lesser of:

20% of your qualified business income, or
20% of your taxable income (excluding capital gains)

If your taxable income exceeds certain thresholds ($191,950 for single filers and $383,900 for married couples filing jointly in 2024), the QBI deduction may be further limited.

Changes to Itemized Deductions

The TCJA also made changes to itemized deductions, which can affect self-employed individuals who itemize their deductions instead of taking the standard deduction.

State and Local Tax (SALT) Deduction

The TCJA limited the state and local tax (SALT) deduction to $10,000 per household. This can affect self-employed individuals who pay significant state and local taxes.

Mortgage Interest Deduction

The TCJA reduced the amount of mortgage interest that can be deducted for new mortgages. This can affect self-employed individuals who own their own homes and deduct mortgage interest.

Changes to the Standard Deduction

The TCJA increased the standard deduction, which can reduce the number of self-employed individuals who itemize their deductions.

Standard Deduction Amounts

For 2024, the standard deduction amounts are:

Single: $13,850
Married Filing Jointly: $27,700
Head of Household: $20,800

7.2 Impact on Self-Employment Tax

The TCJA did not directly change the self-employment tax rate, but it did affect the way self-employment tax is calculated.

Self-Employment Tax Deduction

The TCJA preserved the self-employment tax deduction, which allows self-employed individuals to deduct one-half of their self-employment tax from their gross income.

7.3 Impact on Business Expenses

The TCJA made some changes to the deductibility of business expenses.

Meal Expenses

The TCJA limited the deduction for meal expenses to 50% of the cost. This can affect self-employed individuals who incur meal expenses while traveling for business.

Entertainment Expenses

The TCJA eliminated the deduction for entertainment expenses. This means that self-employed individuals can no longer deduct expenses related to entertaining clients or customers.

7.4 Resources for Understanding Tax Reform

IRS Publication 505, Tax Withholding and Estimated Tax
IRS Publication 535, Business Expenses
income-partners.net for up-to-date tax advice

8. How to Prepare for Tax Season as a 1099 Worker

What steps should I take to prepare for tax season as a 1099 worker? Preparing for tax season involves organizing your financial records, estimating your tax liability, and understanding key deadlines to avoid penalties; effective preparation can streamline the filing process and reduce stress.

8.1 Organize Your Financial Records

One of the most important steps in preparing for tax season is to organize your financial records. This includes gathering all of your income statements, expense receipts, and other relevant documents.

Income Statements

Form 1099-NEC: You should receive Form 1099-NEC from each client who paid you $600 or more during the year.
Other Income: If you received income from other sources, such as cash payments or payments through online platforms, be sure to keep track of those amounts as well.

Expense Receipts

Business Expenses: Gather all of your receipts for business expenses, such as office supplies, business travel, advertising, and professional fees.
Home Office Expenses: If you are claiming the home office deduction, gather documentation to support your claim, such as utility bills, mortgage statements, and rent receipts.

8.2 Estimate Your Tax Liability

Before tax season arrives, it’s a good idea to estimate your tax liability. This will give you an idea of how much you will owe in taxes and help you plan accordingly.

Using Form 1040-ES

The IRS provides Form 1040-ES, Estimated Tax for Individuals, to help you estimate your tax liability. This form includes worksheets and instructions to guide you through the process.

8.3 Understand Key Deadlines

It’s important to understand key tax deadlines to avoid penalties for late filing or late payment.

Estimated Tax Deadlines

April 15
June 15
September 15
January 15 of the following year

Tax Filing Deadline

The tax filing deadline is typically April 15. However, if you need more time to file, you can request an extension.

8.4 Consider Using Tax Software or Hiring a Tax Professional

Tax software can help you prepare your tax return accurately and efficiently. Alternatively, you may want to consider hiring a tax professional to handle your tax preparation.

Tax Software Options

TurboTax
H&R Block
TaxAct

Benefits of Hiring a Tax Professional

Expertise: Tax professionals have the knowledge and expertise to help you navigate complex tax laws.
Time Savings: Hiring a tax professional can save you time and effort.
Accuracy: Tax professionals can help you avoid mistakes and ensure that your tax return is accurate.

8.5 Resources for Tax Preparation

IRS Publication 334, Tax Guide for Small Business
IRS Publication 505, Tax Withholding and Estimated Tax
income-partners.net for expert tax planning assistance

Preparing for Tax Season as a 1099 Worker

9. Resources for Self-Employed Individuals

What resources are available for self-employed individuals to help with taxes and business management? Numerous resources, including IRS publications, online tools, and professional organizations, offer guidance on taxes, business management, and financial planning for self-employed individuals; these resources can help you navigate the complexities of self-employment.

9.1 IRS Resources

The IRS offers a variety of resources for self-employed individuals, including publications, forms, and online tools.

IRS Publications

Publication 334, Tax Guide for Small Business: This publication provides a comprehensive overview of tax rules for small businesses.
Publication 505, Tax Withholding and Estimated Tax: This publication provides guidance on paying estimated taxes.
Publication 535, Business Expenses: This publication provides information on deductible business expenses.

IRS Forms

Form 1040-ES, Estimated Tax for Individuals: This form is used to calculate and pay estimated taxes.
Schedule C (Form 1040), Profit or Loss from Business: This form is used to report income and expenses from a sole proprietorship.
Schedule SE (Form 1040), Self-Employment Tax: This form is used to calculate self-employment tax.

IRS Online Tools

IRS Website: The IRS website (IRS.gov) offers a wealth of information on tax topics.
EFTPS: The Electronic Federal Tax Payment System (EFTPS) allows you to pay your taxes online.

9.2 Small Business Administration (SBA)

The Small Business Administration (SBA) offers resources and support for small business owners, including self-employed individuals.

SBA Resources

SBA Website: The SBA website (SBA.gov) offers information on starting, managing, and growing a small business.
SBA Learning Center: The SBA Learning Center offers online courses and resources on various business topics.
SBA Resource Partners: The SBA partners with organizations like SCORE and Small Business Development Centers (SBDCs) to provide mentoring and training to small business owners.

9.3 Professional Organizations

There are many professional organizations that offer resources and support for self-employed individuals.

National Association for the Self-Employed (NASE)

The National Association for the Self-Employed (NASE) provides resources and support for self-employed individuals, including tax advice, health insurance, and business tools.

Freelancers Union

The Freelancers Union is a membership organization that provides resources and advocacy for freelancers and independent contractors.

9.4 Online Platforms

Several online platforms offer resources and tools for self-employed individuals.

QuickBooks Self-Employed

QuickBooks Self-Employed is an accounting software designed for freelancers and independent contractors. It helps you track your income and expenses, calculate your estimated taxes, and prepare your tax return.

FreshBooks

FreshBooks is another accounting software option for self-employed individuals. It offers features like invoicing, expense tracking, and time tracking.

9.5 Local Resources

Check for local resources in your community, such as:

Chambers of Commerce: Chambers of Commerce often offer resources and networking opportunities for small business owners.
Small Business Development Centers (SBDCs): SBDCs provide counseling and training to small business owners.

9.6 Resources on Income-Partners.net

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