Things You'll Need:
- Computer Form 1040SE Schedule C or C-EZ
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Step 1
Download a Form 1040SE; Schedule C, Profit or Loss from Business; Schedule C-EZ, Net Profit from Business; or a Schedule F, Profit and Loss from Farming; and a Form 8829, Expenses for Business Use of Your Home (if applicable).
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Step 2
Determine your business expenses. Fill out a Schedule C-EZ if your business expenses were less than $5,000. Otherwise, fill out a Schedule C. This will give you your net profit.
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Step 3
Determine your net earnings on your 1040SE form using the information from your Schedule C, Schedule C-EZ, or Schedule F. Multiply your net profit or loss by 92.35 percent. If your earnings are more than $400, you must pay self-employment tax.
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Step 4
Calculate your self-employment tax by multiplying your net earnings by 15.3 percent. Put this figure on Line 57 of Form 1040. Fill out your 1040.
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Step 5
Add your self-employment tax to your income tax. If your tax liability is more than $1,000, you must make quarterly estimated tax payments. In that case, divide your tax liability by four to get your quarterly estimated tax payments. Pay your taxes each quarter no later than the 15th of January, April, June and September. You can pay your taxes online at Electronic Federal Tax Payment System (EFTPS) or mail them to your designated IRS office (see the Where to File Your Taxes By State link below).
