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Who is Self-employeed?

If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself self-employed and you would file Schedule C or Schedule C-EZ with your Form 1040. 

Self-Employed: Don’t Forget to Deduct Health Insurance Costs this Year
For 2010, you can reduce your net self-employment income by the amount of your self-employed health insurance deduction on Form 1040. Self-Employment Tax

If you are self-employed you must pay Self-Employement Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

If you are self -employed you must pay Estimated Taxes.

This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you don’t make quarterly payments you can be penalized for underpayment at the end of the tax year.

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