How Do I File My Taxes If I Have a Job & Am Self-Employed?
An estimated 7.6 million workers hold down more than one job, according to the U.S. Census Bureau. These moonlighters make up 5 percent of the working population of the U.S., the Census Bureau reports. Some workers have a primary job that pays the bills and a start-up business waiting to get off the ground. Since income from all sources is reportable to the Internal Revenue Service, the worker who splits his time must report the income from both workplaces.
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Instructions
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Set up a filing system. Keep accurate records for your self-employment venture, and save all receipts. You will need to file, at a minimum, a U.S. Internal Revenue Service Form 1040 and a Schedule C.
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Review Schedule C of Form 1040 entitled "Profit or Loss from Business - Sole Proprietorship" to familiarize yourself with the files and information you need. Once you have the information together, fill in the blanks on the Schedule C.
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Calculate gross receipts for your business. Subtract cost of goods sold if your business is buying and selling.
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Complete the expenses portion of the Schedule C by using your records and receipts to arrive at a total expenses figure.
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Subtract the expenses from the gross income figure to arrive at a profit or loss calculation. If you choose to deduct expenses for the use of your home, complete Form 8829 and subtract from the profit or loss calculation.
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Enter a profit or loss figure on Line 12 of your Form 1040 and Line 2 of your Schedule SE for self-employment tax if all your investment is at risk. Check box 32a or 32b if you have a loss, and complete Form 6198 if only some investment is at risk.
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Transfer the figure from your W-2 form for your job to Line 7 of the Form 1040 and complete the Form 1040 as usual. The only difference is in Line 12 on the Form 1040, and if you made a profit from self-employment, you will need to complete the Form SE to pay your Social Security and Medicare taxes. Use Line 27 of Form 1040 to deduct 50 percent of your self-employment tax before arriving at an adjusted gross income total.
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Tips & Warnings
Parentheses are used to report losses on income taxes.
References
Resources
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