How does Self Employment Income Sole Proprietor – Schedule C
get reported for
MAGI – Modified Adjusted Gross Income?
Schedule C Profit or Loss from Business
Income from your business get's reported for Covered CA MAGI Income subsidies basically by what you put on your Schedule C, 1 and 1040 Form .
Visit our Webpage on Schedule C
Self Employed – Group Health Insurance
Schedule 1 1040
Tax Return Form # 1040
Instructions for Form 1040 pdf * (HTML)
Learn More⇒
IRS publication #974 Premium Tax Credits
MAGI Gross Income – Line 37 – 8 b for Covered CA subsidies.
Problems figuring your income and expenses mid year?
- Try Quicken on how to produce monthly & quarterly reports.
- Try your own banks or Wells Fargo AUTOMATIC spending & income reports – they can be adjusted to your specific needs.
Our web pages on
- Rental Income
- Schedule C Profit or Loss from Business
- Unemployment Compensation – How to apply? How it’s taxed.
- Health Savings Accounts HSA
- Retirement Plans – SEP, IRA Etc.
- Self Employed Health Insurance Deduction
#Line8b Adjusted Gross income then add line 2a, 5a &
to get Covered CA MAGI Income
2019 Schedule 1 Additional Income & Adjustments to Income
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
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 – Introduction AB 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.
- Our webpage on the Home Office Deduction
- 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:
- Form 1040-ES, Estimated Tax for Individuals
- Publication 505, Tax Withholding and Estimated Tax
- Publication 535, Business Expenses
IRS YouTube Videos:
Steve Shorr
Website Introduction Video
Instant Health Quotes & Enroll
15 Reasons to appoint us as your broker – No extra charge
Our Webpage 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:
- Issues for Individuals Performing Services
- Issues for the Companies Providing Services
Covered CA Certified Agent
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VIDEO What is APTC Advance Premium Tax Credit
Interactive Tax Assistant (ITA)
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Tax #Estimators
- turbotax.com
- H & R Block
- Efile.com
- Estimate the Subsidy for Health Insurance, benefits, premiums, etc.
- 8962 ONLINE Calculator
- TaxFormCalculator.com
- etax.com
ACA What You Need To Know #5187
Health Net VIDEO
How to get subsidies – pay less for coverage
See our main page on the Self Employed Tax Credit Line 29 IRS §106.
AB 1672 – (1992 to 2013) Small Group Health Rules prior to Obamacare 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
Self Employed Deduction for S Corp Owners
Details on Obamacare Subsidy and Line 29 deduction
Self Employed – New Definition under Health Care Reform – Introduction
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:
Additional Information:
Question:
I received a Form 1099-MISC instead of a Form W-2. I’m not self-employed and do not have a business.
How do I report this income?
Answer:
If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor.
If you were not an employee of the payer, where you report the income depends on whether your activity is a trade or business. You are in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous.
If you believe you may be an employee of the payer,
see Publication 1779, Independent Contractor or Employee, for an explanation of the difference between an independent contractor and an employee.
For more information on employer-employee relationships, refer to Chapter 2 of Publication 15, (Circular E), Employer’s Tax Guide, Chapter 2 of Publication 15-A,
Employer’s Supplemental Tax Guide, and Tax Topic 762, Independent Contractor vs. Employee.
Additional Information:
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
What do you expect your 2017 MAGI Income to be? That is Line 37 on your 1040?
magi-modified-adjusted-gross-income-line-37
covered-ca-income-chart
Click here to get a quote and see how much premium assistance you might get
Your kids can still get Kaiser on Medi-Cal.
proof-income-accepted-documents
How to calculate Self Employment Income as Modified Adjusted Gross Income – MAGI
Since your income has changed, you don’t have to wait for open enrollment. It’s a special enrollment.
You’ve missed the deadline for 9.1.2017 enrollment in Covered CA, but you might be able to cancel coverage and Medi-Cal would pick it up.
After doing extensive research that could cross a Rabbi or Philidelphila lawyer’s eye, since you were not already in Covered CA the change in income won’t help.
There is still the change in family status that would. CCR Section 6504 (a) (2)