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.
Download a Schedule C form from the IRS website, the form on which you will report your profit and losses. Fill out your income and deduction information. Note that you must have written proof of your legitimate deductions, or the Internal Revenue Service may audit you. Download a Schedule SE form from the IRS website.nstructions. Keep records of your income, including all sales through Etsy and other venues. Keep detailed records of your possible deductions, such as office supplies, craft supplies.