Self-Employment

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Self-Employment

The state of owning a business or working 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 ?
On profits of more than pounds 30,000, a self employed person pays combined income tax and National Insurance of pounds 7,234, compared to the pounds 3,645 in corporation tax paid by a limited company.
THE deadline for the online income tax submission and forms from self employed persons, companies and others that are not liable to pay tax to an employer is onJuly 31.
Self employed persons can request the certificate on their own behalf.

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