DESCRIPTION
This module covers key tax considerations for self-employed taxpayers, including the calculation and reporting of self-employment tax. Participants review Schedule C, identify common business income and deductible expenses, and apply current rules for meals and entertainment. The module also addresses recent 1099-K reporting updates and the treatment of self-employed health insurance deductions. Concepts are reinforced through practical exercises involving expense identification and preparation of sole proprietor income, loss, and self-employment tax calculations.
LEARNING OBJECTIVES
- Define self-employment.
- Identify common business expenses reported by self-employed taxpayers on Schedule C.
- Explain the tax treatment of meals and entertainment expenses for self-employed individuals.
- Identify the tax treatment of health insurance for self-employed individuals.
- Calculate net earnings from self-employment and the resulting self-employment tax liability.
