Before Report Self-Employment or Business Income, Know what You’ll Need
If you need to report self-employment income or business income on a tax return, it’s best to organize the papers you’ll need before getting started.
Filing a Schedule C may seem like a daunting task. However, you can avoid complications by keeping your records organized throughout the year .
It’s also good to keep in mind that doing your taxes online will ultimately save you time and money.
Below, you’ll find the information you’ll need to report when completing a business tax return. Keep in mind, if you’re a sole proprietor, do freelance or contract work, you’re considered a self-employee and are required to file a business tax return (SCH C).
What You’ll Need to Report On Business Tax Return (SCH C)
#1: Income
According to the IRS, you’ll need to report ALL income you’ve received.
Make a list of gross receipts or sales from the tax year. If you received 1099 forms from clients or individuals you provided services for, you’ll need to include these amounts.
The IRS requires you to report ALL income so be sure to include payments you received that aren’t reported on a 1099 form
There’s other amounts you may not think of that the IRS considers forms of income. This includes;
-
value of goods or services received through barter transactions
-
bad debts recovered that you wrote off on a prior-year return
-
interest on any business bank accounts
#2: Expenses (more…)
