Question

Hi, I was wondering if you are starting a new painting business, say a job was 4,300 including the paint and materials. Does the irs want to know your profit and charge you the percentage through the

Forum|Forum|7 years ago
June 3, 2019
1 reply
0 views

No text available

TurboTax Free Edition Online

C

CherylW

Employee

Yes, it does.

You'll also most likely be assessed self-employment tax of 15.3% of your net income.

You can also report any costs that you had to make that income as expenses. You can subtract your expenses from your total income (in your case, $4,300). The amount that you get, called net profit, is what your regular tax and your self-employment tax are figured on.

This Turbo Tax FAQ has more on how to figure your net profit on a Schedule C, the form used to report self-employment:

Reporting Self-Employment Business Income and Deductions

[Edited April 3, 2019|10:00 AM]