Federal Income Tax FAQs
Frequently asked questions (FAQs) about U.S. Federal Government income and business taxes.
How Does the IRS Define Being Self-Employed?
How do you know if the IRS sees you as being self-employed? If you are, you need to file self-employment taxes. See if you meet the IRS criteria for being self-employed.
What IRS Tax Forms Should I Use to File Self-Employment Taxes?
List of IRS forms to use for filing self-employment taxes.
Can I take any deductions for paying self-employment taxes?
Yes. There are two ways you may be able to reduce your taxes when you pay self-employment social security taxes.
My husband and I run a business together. Do we both need to file taxes?
Yes. Anyone that receives financial benefits, is employed by, paid by, or takes tax credits or deductions for the business, must file a tax return. Read more about dividing net income between spouses and restrictions on women-owned businesses.
If I do not owe income tax do I need to file self-employment tax?
Yes. Read why, and find out what forms to file with the IRS if you are self-employed.
What is the U.S. Federal Government Self-Employment Tax Rate?
The Social Security tax rate for 2007, 2008, and 2009 is 15.3 percent (12.4 percent goes to Social Security and 2.9 percent is applied to Medicare). See more information an easy-to-read chart.
Why Do I Have to Pay Self-Employment Tax?
Where do my self-employment taxes go and why do I have to pay them?
How Can I Change Accounting Methods?
If you wish to change accounting methods you are required to get permission from the IRS in advance. Failure to do so can result in penalties imposed by the IRS.