Regularly employed people[edit] For 2014, the employee's share of the Social Security portion of the FICA tax is 6.2% of gross compensation up to a limit of $117,000 of gross compensation (resulting in a maximum Social Security tax of $7,254).
You can find more details on how to complete Schedule C in this step-by-step process explanation. How Do I File Schedule C with the IRS? File Schedule C with your Form 1040 after entering your net business income from line 31 of your Schedule C on line 12, Business Income or Loss. This income is included with all other income sources to determine your total adjusted gross income tax liability.
Using Schedule C-EZ instead. Many sole proprietors are able to use a simpler version called Schedule C-EZ. This form omits a lot of the detail in the full Schedule C and just asks for your total business receipts and expenses. However, you still need to complete a separate section if you claim expenses for a vehicle.