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UPDATED: JANUARY 2012 114 INCOME EARNED SELF-EMPLOYMENT OR SMALL BUSINESS INCOME Following are some items of business expenditures, which are not deductible from gross business income: Payments on

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What is self-employment or small business?

Self-employment or small business refers to individuals earning income from their own business rather than being employed by someone else.

Who is required to file self-employment or small business?

Individuals who run their own businesses or work as independent contractors are required to file self-employment tax.

How to fill out self-employment or small business?

To fill out self-employment tax, individuals must use Schedule C (Form 1040) to report their income and expenses.

What is the purpose of self-employment or small business?

The purpose of self-employment tax is to ensure that individuals who earn income from their own business pay their fair share of taxes.

What information must be reported on self-employment or small business?

Individuals must report their total income, expenses, and deductions related to their self-employment business.

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