Question: If I do not owe income tax do I need to file self-employment tax?
Answer: Yes. Even if you or your business does not owe income tax and you meet the IRS's definition of being "self-employed" you must still file self-employment Social Security tax.
To file, use Form 1040 and Schedule SE to pay self-employment Social Security tax. You need to file these forms even if you are already receiving Social Security benefits. Additionally, you must submit the following federal tax forms to the IRS by April 15th following any tax year in which you had net earnings of $400 or more:
- Form 1040 (U.S. Individual Income Tax Return);
- Schedule C (Profit or Loss from Business) ;
- or Schedule F (Profit or Loss from Farming) as appropriate; and
- Schedule SE (Self-Employment Tax).
Filed in: Federal Tax FAQs
