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.
Step 1. Obtain a Schedule C or C-EZ associated with IRS tax form 1040. Schedule C is the form used to report income from a business. If you are using a tax preparation software program, it will prompt you to identify the types of income you had for the tax year. When you respond that you had oil or gas royalty income, the program will add Schedule C to the list of forms to be completed.