Clear records.
Better prepared.

Start with your business structure

Sole proprietors generally report business income or loss using Schedule C with Form 1040. Other business structures can require different returns. Choose the forms that match your legal and tax circumstances.

The IRS states that net earnings from self-employment of $400 or more trigger an income tax return requirement. Other filing requirements can still apply below that figure; it is not a general tax-free allowance.

Estimated payments: check before year-end

Individuals, including sole proprietors, generally need estimated tax payments if they expect to owe $1,000 or more when filing their return. Withholding, prior-year liability and exceptions affect the requirement. Use the IRS worksheet or your tax professional to assess your position.

Estimated tax has four payment periods, which are not four equal calendar quarters. Check the instructions for the relevant tax year, including applicable payment dates and special rules.

Form 1040-ES provides the method and worksheet for individuals. These are tax-payment requirements, not payments made automatically by EZ@Work.

Self-employment tax is a separate topic

Self-employment tax covers Social Security and Medicare. It is separate from federal income tax. The amount due depends on the applicable rules and your circumstances.

Schedule SE is used to work out self-employment tax. A recorded-income total in EZ@Work is not a calculation of this liability.

Keep supporting documents with your figures

The IRS allows a recordkeeping system suited to your business that clearly shows income and expenses. Supporting documents help substantiate the figures reported on a return.

Retention depends on the document, transaction and applicable rules. Check the IRS recordkeeping guidance rather than applying one storage period to every document.

Recording an expense in EZ@Work does not determine whether it is deductible. Review the evidence and tax treatment with your tax professional.

Federal information is only one part

This page covers selected federal topics. Your state and local requirements need a separate check based on your business and where you operate.

The IRS directory links to official state websites for business and tax information. Use the relevant state authority to check the requirements that apply to you.

Organised records for your tax professional

Bring together recorded income, expense documents, payments and questions about changes in your business. Your tax professional can identify the forms and treatment that fit your circumstances.

EZ@Work provides clients, projects, tasks, time tracking, recorded income and expenses, invoices and financial report exports. Ezri assists with supported product actions; changes require approval and usage is subject to your plan.