Schedule 1 1040

Tax Return Form # 1040
Instructions for Form 1040 pdf * (HTML)

schedule 1 additional income

Learn More⇒

IRS publication #974 Premium Tax Credits 

MAGI Gross Income – Line 37  – 8 b  for Covered CA subsidies.  

Schedule C

Instructions.

Problems figuring your income and expenses mid year?

Our web pages on 

#Line11 Adjusted Gross income then add line 2a, 6a &   8 (Foreign Income)

to get Covered CA MAGI Income

MAGI Income from 1040

1040 Form   ***  Schedule 1  Additional Income & Adjustments to Income

Steve's Video on MAGI Income  *  Covered CA's Video

Iteration 

If you get tax subsidies through Covered CA to pay your premium,
the deduction claimed for the premiums under §106  * line 16  and the Premium Tax Credit (PTC)

that gets  computed,
taking the deduction into account, must be less than or equal to the premiums

Now that’s a mouth full isn’t it!

Check out  Publication 974 where there are special instructions for figuring the self-employed health insurance deduction and PTC if you or your spouse was self-employed, you or a member of your tax family was enrolled in a qualified health plan and you may be eligible for the PTC.

Because the amount of the self-employed health insurance deduction may affect the amount of the PTC, and the amount of the PTC may affect the amount of the deduction, a taxpayer who may be eligible for both may have difficulty determining the amounts of those items.

A taxpayer who may be eligible for both may follow the instructions in this part to determine amounts of the self-employed health insurance deduction and PTC that are allowable under the law.  Publication 974

Resources & Links

If you earn less than $60k, tax software is available for Free!

VITA  IRA Volunteer Income Tax Assistance

IRS Publication #535 Business Expenses

What about estimating and uneven income?  Kaiser Foundation FAQ’s.

IRS Pub. #974 Page 56.  Use the Premium Tax Credits  and not the Self-Employed Health Insurance Deduction Worksheet in Publication #535.

Main Small Biz Tax Credit and Related Pages

See our MAIN PAGE for Section 106 tax deduction for health premiums.

Health Insurance Deduction Line 29  for self employed

Schedule C – Line 12 Biz Income or Loss,  Line 29 Health Insurance Premiums,  Line 37 Adjusted Gross Income,   MAGI Income

Home Office Deduction

Self Employed Deduction for S Corp Owners

Details on Obamacare Subsidy and Line 29 deduction

Premium Tax Credit # 8962 Health Coverage Tax Credit #8885 Form 1040 and Instructions Self Employed – New Definition under Health  Care Reform – IntroductioAB 1672 – (1992 to 2013) Small Group Health Rules prior to Obamacare

 

IRS Tax Tips for Self Employed

If you are self-employed, you normally carry on a trade or business. Sole proprietors and independent contractors are two types of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. Here are six important tips from the IRS:

  • SE Income. Self-employment can include income you received for part-time work. This is in addition to income from your regular job.
  • Schedule C or C-EZ. You must file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with your Form 1040. You may use Schedule C-EZ if you had expenses less than $5,000 and meet certain other conditions. See the form instructions to find out if you can use the form.
  • SE Tax. You may have to pay self-employment tax as well as income tax if you made a profit. Self-employment tax includes Social Security and Medicare taxes. Use Schedule SE, Self-Employment Tax, to figure the tax. If you owe this tax, attach the schedule to your federal tax return.
  • Estimated Tax. You may need to make estimated tax payments. Try IRS Direct Pay. People typically make these payments on income that is not subject to withholding. You usually pay estimated taxes in four annual installments. If you do not pay enough tax throughout the year, you may owe a penalty.
  • Allowable Deductions. You can deduct expenses you paid to run your business that are both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and proper for your trade or business.
  • When to Deduct. In most cases, you can deduct expenses in the same year you paid, or incurred them. However, you must ‘capitalize’ some costs. This means you can deduct part of the cost over a number of years.

Visit the Small Business and Self-Employed Tax Center on IRS.gov for all your federal tax needs. You can also get IRS tax forms on IRS.gov/forms anytime.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

Additional IRS Resources:

IRS YouTube Videos:

Steve Shorr
Website Introduction Video

Steve Shorr - website introduction

Instant Health Quotes & Enroll

15 Reasons to appoint us as your broker – No extra charge

 

Our Webpage on Insurance Coverage for 

COVID 19 

Information on Insurance Coverage for COVID 19

 

 

Sharing, #Gig, On Demand, Access Economy, Air Bnb, Lyft, Uber

 

If you use one of the many online platforms available to rent a spare bedroom, provide car rides, or to connect and provide a number of other goods or services, you’re involved in what is sometimes called the sharing economy.

An emerging area of activity in the past few years, the sharing economy has changed how people commute, travel, rent vacation accommodations and perform many other activities. Also referred to as the on-demand, gig or access economy, the sharing economy allows individuals and groups to utilize technology advancements to arrange transactions to generate revenue from assets they possess – (such as cars and homes) – or services they provide – (such as household chores or technology services). Although this is a developing area of the economy, there are tax implications for the companies that provide the services and the individuals who perform the services.

This means if you receive income from a sharing economy activity, it’s generally taxable even if you don’t receive a Form 1099-MISC, Miscellaneous Income, Form 1099-K, Payment Card and Third Party Network Transactions, Form W-2, Wage and Tax Statement, or some other income statement. This is true even if you do it as a side job or just as a part time business and even if you are paid in cash. On the other hand, depending upon the circumstances, some or all of your business expenses may be deductible, subject to the normal tax limitations and rules.

Learn More ===>  irs.gov/sharing-economy

The following tax issues may apply to those participating in the sharing economy:

Our webpage on AB 5 & 1099 vs employee

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Enrolling in health plans has helped people focus on their families and careers, and feel protected against unexpected medical issues.

I'm in Charles VIDEO

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I'm in Sonia

 

Publication 535 Business Expenses

publication 535 business expenses

Business Deduction
Meals & Entertainment

IRS #Pub974 

Premium Tax Credit
IRS Publication 974

VIDEO What is APTC Advance Premium Tax Credit

 

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Interactive Tax Assistant (ITA)

Am I eligible to claim the Premium Tax Credit? 

IRS FAQ on Premium Tax Credit

Learn More About Your Health Insurance Tax Documents | Covered California VIDEO   

 

Tax #Estimators

 

 

ACA What You Need To Know  #5187 ACA What you need to know # 5187

Health Net VIDEO
How to get subsidies – pay less for coverage 

 
 
Kaiser Foundation reports that 27% of uninsured individuals are eligible to purchase a bronze plan with $0 premiums after subsidies in 2019.  Silver plans with cost-sharing reductions (CSR) for single individuals with incomes below 200% of the poverty level can be purchased for roughly $20 to $130 per month after subsidies, depending on an enrollees’ income. KFF *

4 comments on “Schedule C – Self-Employment Income – Line 12

  1. Question:

    I received a Form 1099-MISC with an amount in box 7 for nonemployee compensation. What forms and schedules should I use to report income earned as an independent contractor?

    Answer:

    • Independent contractors report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). However, you may qualify to use Schedule C-EZ (Form 1040), Net Profit from Business (Sole Proprietorship).
    • Also file Schedule SE (Form 1040), Self-Employment Tax, if net earnings from self-employment are $400 or more. This form allows you to figure social security and Medicare tax due on your net self-employment income.
    • You may need to make estimated tax payments. Refer to Form 1040-ES, Estimated Tax for Individuals, for more details on who must pay estimated tax. If you need to make estimated tax payments and do not pay them timely, you may also need to file Form 2210, Underpayment of Estimated Tax by Individuals, Estates & Trusts.

    Additional Information:

     

  2. My wife and I have had some serious work challenges over the last year and our income has plummeted down ridiculously low but we’re still on a private-pay Kaiser plan.

    We just had our fourth child and the monthly premiums at Kaiser are getting a bit out of hand for us.

    Do we qualify for Covered California and at what level.

    We’re both self-employed at the moment so I’m not sure what kind of proof of income you need

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