What are the rules for filing a tax return if I’m self-employed?

If you are self-employed in California, you are required to file a tax return every year. As a self-employed person, you are considered an independent contractor, so you are responsible for computing and reporting your own income. To complete your tax return, you will need to file Form 540. This is the form used to report earnings and pay taxes. When filing a tax return, you must report any income you made throughout the year. This includes any money you made from your business, as well as any unemployment benefits, Social Security benefits, or other income sources. You should also include any expenses you had in connection with your business, such as supplies, travel, and other costs. All of this information should be reported on Line 16 of your return. You will also need to calculate the amount of self-employment tax you owe. This is an additional tax that independent contractors have to pay. The amount of tax is based on your net earnings, which is the money you made minus your business expenses. You can compute how much self-employment tax you owe by using Schedule SE. Once you have completed your return, you can file it electronically or by mail. The deadlines for filing depend on the type of return you are filing, so make sure to check the appropriate filing date. If you are filing electronically, your return will be processed quicker and you may receive a refund much sooner.

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What are the rules for filing a tax return if I’m self-employed?

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