Self-employed income

(redirected from Self Employment Income)

Self-employed income

Taxable income of a person involved in a sole proprietorship or other sort of free-lance work.

Self-Employed Income

Net profit derived as the result of owning a business or for work as an independent contractor. In the United States, self-employed persons pay double the social security tax of employed persons, but are entitled to more tax deductions. One calculates self-employed income by taking one's gross income and deducting all business expenses. For example, a self-employed person working from home may deduct a certain percentage of his/her rent or mortgage and not pay taxes on that portion of his/her income. Self-employed income is reported to the IRS on Schedule C of the 1040 Form.
References in periodicals archive ?
Real Investor Tips' coaching services also assist investors with unusual and difficult cases such as balloon mortgages, second loans, self employment income verification, multiple properties with the same bank, and wanting to preserve credit.
He also cautioned that he has been seeing more S corporation audits in the last 18 months, probably a result of more business owners converting to S corporations to avoid accurately reporting self employment income.
That can be a tax-saver for the owners of small companies and people with self employment income.
The reduction of a taxpayer's SE taxes or self employment income can reduce the amount of income creditable for computation of Social Security benefits.
A net operating loss carried forward or back does not reduce self employment income.
Once self employment income reaches the celling, the self-employment tax ends.

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