Regularly employed people[edit] For 2014, the employee's share of the Social Security portion of the FICA tax is 6.2% of gross compensation up to a limit of $117,000 of gross compensation (resulting in a maximum Social Security tax of $7,254).
You can find more details on how to complete Schedule C in this step-by-step process explanation. How Do I File Schedule C with the IRS? File Schedule C with your Form 1040 after entering your net business income from line 31 of your Schedule C on line 12, Business Income or Loss. This income is included with all other income sources to determine your total adjusted gross income tax liability.
This article pertains to year-end taxes if you are self-employed or an independent contractor and the forms you may need in order to calculate what you owe and file with the IRS in April. At the end of the year, youâll need to fill out three forms: the Schedule C, the Schedule SE and the 1040. What is self-employment tax and the Schedule SE?