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7 Self-Employment Tax Forms for Home Business Owners

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Individuals, like freelancers or independent contractors, must be mindful of certain self-employment tax forms they need to file before the Internal Revenue Service (IRS). Accomplishing and submitting tax returns for the self-employed may become very complicated, especially for those who are operating businesses in their own homes. What are the tax forms a self-employed individual have to keep in mind?

Self-Employment Tax Forms: A Handy List

 

1. Form 8829, Expenses for Business Use of Your Home

Form 8829, Expenses for Business Use of Your Home | Self-Employment Tax Forms for Home Business Owners

Since we’re discussing tax forms for home business owners, it must be established that filling out Form 8829 is a must. This form acts as the main IRS form for declaring allowable business-related house expenses in a year. If a freelancer or independent contractor uses multiple homes for official business, one form shall be filed for each.

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According to the IRS, one can declare expenses under “home business” if spent:

  • in areas of the house considered as primary business location;
  • in areas of the house, where owners meet their clients or customers for business purposes; or
  • in a location not attached to the house but used for business purposes.

2. Schedule C (Form 1040), Profit or Loss From Business


A self-employed, sole proprietor has to declare in Schedule C of Form 1040 any income gain or loss from work. This form shall be attached to either Forms 1040, 1040NR or 1041. Information reported on this form includes:

  • any income and deductions from joint ventures; and
  • any income declared on Form 1099-MISC (Miscellaneous Income)

3. Schedule C-EZ (Form 1040), Net Profit from Business

Schedule C-EZ (Form 1040), Net Profit from Business | Self-Employment Tax Forms for Home Business Owners

For some self-employed home business owners, they need to accomplish Schedule C-EZ instead of Schedule C. According to the IRS, home business owners have to file Schedule C-EZ if they have:

  • Spent $5,000 or less for business,
  • No inventory, net loss, or employee in an entire year,
  • No tax deduction for home business-related expenses,
  • Not filed Form 4562 (Depreciation and Amortization)

4. Schedule SE (Form 1040), Self-Employment Tax

Schedule SE (Form 1040), Self-Employment Tax | Self-Employment Tax Forms for Home Business Owners

Schedule SE serves as the basic IRS form that determines the tax self-employed individuals have to pay. Those who earn $400 or more from self-employment have to pay self-employment tax to the government. This form also becomes the basis of the Social Security Administration in calculating social security taxes. For 2017, the IRS sets the highest self-employment amount of income for social security tax to $127,200.

5. Form 1099-MISC, Miscellaneous Income


According to the IRS, those who need to file Form 1099-MISC include self-employed individuals, who receive no lower than:

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  • $10 worth of dividends, royalties, or tax-exempt interest;
  • $600 worth of rents, prizes, and other income payments.

6. Schedule K-1 (Form 1065), Partner’s Share of Income, Credits, Deductions, etc.

Schedule K-1 (Form 1065), Partner's Share of Income, Credits, Deductions, etc. | Self-Employment Tax Forms for Home Business Owners

Individuals involved in a partnership are considered self-employed when they perform services specifically for the said partnership. Hence, they need to file Schedule K-1. This rule also covers members of a limited liability company (LLC).

7. Form 1040, U.S. Individual Income Tax Return

Form 1040, U.S. Individual Income Tax Return | Self-Employment Tax Forms for Home Business Owners

Yes, even home business owners must duly fill out Form 1040. You must file this form if your net earnings from self-employment reach $400 and above. And even if you earn less than $400, you still need to check the instructions in Form 1040 and see if you fall into any of the filing requirements.

 

Now you know the basic self-employment tax forms required of home business owners, watch this video from Expertvillage and learn more tax tips for home business owners:

Home business owners need to understand what these self-employment tax forms are, so they won’t get confused with filing their taxes. Also, it’s important for the self-employed to be aware of these forms, so they can properly apply for the appropriate tax credits, deductions, and benefits.

Do you have any issues related to filing these self-employment tax forms? Share us your thoughts in the comments section below.

Up Next: What Tax Forms Are Needed for Independent Contractors?