- If you carry on a trade or business, are a sole proprietor, or you are a member of a partnership that carries on a trade or business.
- In order for an activity to be considered a small business it needs to have certain profit. A certain activity generally is presumed to be for profit if it makes a profit during at least three of the last five tax years, including the current year. If an activity is not for profit, losses from that activity may not be used to offset other income.
- You are also self-employed if you have a part-time business in addition to your regular job. Income from your business is considered Self-Employment income.
- As a self-employed individual, you are subject to Self-Employment tax and are responsible for payment of all taxes due. (Self-employment taxes: Social Security and Medicare tax).
- You are required to provide an identification number on your individual tax return.
All inquiries, estimates, tax return reviews from previous years, and ITIN applications for you and your family are free. Click here to make an appointment with Zigma Tax Service Today or call 757-454-6120.