In general, you’re required to pay an estimate each quarter or face a penalty.īut you also must use a Schedule C form to document the income or loss your business experienced last year. If you became self-employed at some point last year, you should have already paid at least one quarterly estimate of the taxes you owe. Forms to file self-employed taxesĮssentially, you’ll be filing a longer tax return for 2021 that covers your income as a W-2 worker and self-employed worker, as well as any other income you earned. It’s even more complicated for Americans who were a combination of the two last year.īut Lisa Green-Lewis, a CPA and tax expert with Turbo Tax, said it's manageable. From there, it’s a relatively easy process to file your income tax return, aside from other areas such as investment income.īut when you’re self-employed, it’s a whole different ballgame. “All that is pretty much on a silver platter for the vast majority of employees,” said Jay Soled, a professor and director of the master of accountancy in taxation program at Rutgers University. REFUND UPDATE: IRS says stimulus check mistakes are among reasons for tax refund delaysĢ022 TAX SEASON: More than half of tax returns already filed, average refund amount up 12% from last year

It’s a record of how much money you earned, taxes withheld from your paycheck and pretax contributions you’ve made to such things as a retirement account and health insurance. As a salaried worker, your employer files a W-2 form on your behalf. In the same year, a record 5.4 million new business applications were filed, according to Census Bureau data.įrom a tax perspective, it is much simpler to be a salaried worker than to be self-employed.

Last year more than 47 million people quit their jobs. The Great Resignation may be creating a tax headache for a lot of people.

Youtube tax write offs