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

If you are self-employed in Washington State, you must file a self-employment tax return each year. You must include your business income and expenses, as well as any deductions that you are entitled to claim. To file a self-employment tax return, you will need to fill out the form Schedule C, or a Profit or Loss from Business that comes with your 1040 federal tax return form. When filing your self-employment tax return, you will need to provide information about your business income, expenses and deductions. You will need to calculate your self-employment income and submit the information to the Internal Revenue Service (IRS). Any income that you make from providing services, such as freelance work, will be considered self-employment income. You will also need to deduct any business expenses that you incurred while running your business. These expenses must be related to your business and can include things such as supplies, rent, advertising and other common business expenses. After calculating your self-employment income and deductions, you will need to calculate your net profit or loss from your business. The net profit or loss figure is the amount of money you will pay taxes on. You will then need to include this net profit or loss amount on your federal Form 1040. Finally, you may be eligible for deductions that can reduce the amount of tax you owe. Certain expenses, such as health care premiums or student loan interest, may be deductible from your self-employment income. To determine if you qualify for a deduction, you should contact a tax professional or certified public accountant to help you navigate the tax laws in Washington State.

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

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