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.
1 If you accrued expenses of $5,000 or less, you may be eligible for the Schedule C-EZ short form.  Schedule SE: Schedule SE allows you to report your Social Security and Medicare taxes. The income or loss you calculated on Schedule C is used to calculate your self-employment taxes paid during the year.