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Free 2010 Tax Forms

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Free 2010 Tax Forms

Free 2010 tax forms 6. Free 2010 tax forms   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free 2010 tax forms Free help with your tax return. Free 2010 tax forms   You can get free help preparing your return nationwide from IRS-certified volunteers. Free 2010 tax forms The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free 2010 tax forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free 2010 tax forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free 2010 tax forms In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free 2010 tax forms To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free 2010 tax forms gov, download the IRS2Go app, or call 1-800-906-9887. Free 2010 tax forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free 2010 tax forms To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free 2010 tax forms aarp. Free 2010 tax forms org/money/taxaide or call 1-888-227-7669. Free 2010 tax forms For more information on these programs, go to IRS. Free 2010 tax forms gov and enter “VITA” in the search box. Free 2010 tax forms Internet. Free 2010 tax forms    IRS. Free 2010 tax forms gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free 2010 tax forms Download the free IRS2Go app from the iTunes app store or from Google Play. Free 2010 tax forms Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free 2010 tax forms Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free 2010 tax forms gov or download the IRS2Go app and select the Refund Status option. Free 2010 tax forms The IRS issues more than 9 out of 10 refunds in less than 21 days. Free 2010 tax forms Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free 2010 tax forms You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free 2010 tax forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free 2010 tax forms Use the Interactive Tax Assistant (ITA) to research your tax questions. Free 2010 tax forms No need to wait on the phone or stand in line. Free 2010 tax forms The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free 2010 tax forms When you reach the response screen, you can print the entire interview and the final response for your records. Free 2010 tax forms New subject areas are added on a regular basis. Free 2010 tax forms  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free 2010 tax forms gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free 2010 tax forms You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free 2010 tax forms The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free 2010 tax forms When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free 2010 tax forms Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free 2010 tax forms You can also ask the IRS to mail a return or an account transcript to you. Free 2010 tax forms Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free 2010 tax forms gov or by calling 1-800-908-9946. Free 2010 tax forms Tax return and tax account transcripts are generally available for the current year and the past three years. Free 2010 tax forms Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free 2010 tax forms Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free 2010 tax forms If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free 2010 tax forms Check the status of your amended return using Where's My Amended Return? Go to IRS. Free 2010 tax forms gov and enter Where's My Amended Return? in the search box. Free 2010 tax forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free 2010 tax forms It can take up to 3 weeks from the date you mailed it to show up in our system. Free 2010 tax forms Make a payment using one of several safe and convenient electronic payment options available on IRS. Free 2010 tax forms gov. Free 2010 tax forms Select the Payment tab on the front page of IRS. Free 2010 tax forms gov for more information. Free 2010 tax forms Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free 2010 tax forms Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free 2010 tax forms gov. Free 2010 tax forms Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free 2010 tax forms Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free 2010 tax forms gov. Free 2010 tax forms Request an Electronic Filing PIN by going to IRS. Free 2010 tax forms gov and entering Electronic Filing PIN in the search box. Free 2010 tax forms Download forms, instructions and publications, including accessible versions for people with disabilities. Free 2010 tax forms Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free 2010 tax forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free 2010 tax forms An employee can answer questions about your tax account or help you set up a payment plan. Free 2010 tax forms Before you visit, check the Office Locator on IRS. Free 2010 tax forms gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free 2010 tax forms If you have a special need, such as a disability, you can request an appointment. Free 2010 tax forms Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free 2010 tax forms Apply for an Employer Identification Number (EIN). Free 2010 tax forms Go to IRS. Free 2010 tax forms gov and enter Apply for an EIN in the search box. Free 2010 tax forms Read the Internal Revenue Code, regulations, or other official guidance. Free 2010 tax forms Read Internal Revenue Bulletins. Free 2010 tax forms Sign up to receive local and national tax news and more by email. Free 2010 tax forms Just click on “subscriptions” above the search box on IRS. Free 2010 tax forms gov and choose from a variety of options. Free 2010 tax forms Phone. Free 2010 tax forms    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free 2010 tax forms Download the free IRS2Go app from the iTunes app store or from Google Play. Free 2010 tax forms Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free 2010 tax forms gov, or download the IRS2Go app. Free 2010 tax forms Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free 2010 tax forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free 2010 tax forms Most VITA and TCE sites offer free electronic filing. Free 2010 tax forms Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Free 2010 tax forms Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Free 2010 tax forms Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Free 2010 tax forms If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Free 2010 tax forms The IRS issues more than 9 out of 10 refunds in less than 21 days. Free 2010 tax forms Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free 2010 tax forms Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Free 2010 tax forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free 2010 tax forms Note, the above information is for our automated hotline. Free 2010 tax forms Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Free 2010 tax forms Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Free 2010 tax forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free 2010 tax forms It can take up to 3 weeks from the date you mailed it to show up in our system. Free 2010 tax forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Free 2010 tax forms You should receive your order within 10 business days. Free 2010 tax forms Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Free 2010 tax forms If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Free 2010 tax forms Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Free 2010 tax forms The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Free 2010 tax forms These individuals can also contact the IRS through relay services such as the Federal Relay Service. Free 2010 tax forms Walk-in. Free 2010 tax forms   You can find a selection of forms, publications and services — in-person. Free 2010 tax forms Products. Free 2010 tax forms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free 2010 tax forms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free 2010 tax forms Services. Free 2010 tax forms You can walk in to your local TAC for face-to-face tax help. Free 2010 tax forms An employee can answer questions about your tax account or help you set up a payment plan. Free 2010 tax forms Before visiting, use the Office Locator tool on IRS. Free 2010 tax forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Free 2010 tax forms Mail. Free 2010 tax forms   You can send your order for forms, instructions, and publications to the address below. Free 2010 tax forms You should receive a response within 10 business days after your request is received. Free 2010 tax forms Internal Revenue Service 1201 N. Free 2010 tax forms Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Free 2010 tax forms The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free 2010 tax forms Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Free 2010 tax forms   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Free 2010 tax forms We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Free 2010 tax forms You face (or your business is facing) an immediate threat of adverse action. Free 2010 tax forms You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Free 2010 tax forms   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Free 2010 tax forms Here's why we can help: TAS is an independent organization within the IRS. Free 2010 tax forms Our advocates know how to work with the IRS. Free 2010 tax forms Our services are free and tailored to meet your needs. Free 2010 tax forms We have offices in every state, the District of Columbia, and Puerto Rico. Free 2010 tax forms   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Free 2010 tax forms   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Free 2010 tax forms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Free 2010 tax forms Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Free 2010 tax forms Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Free 2010 tax forms Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Free 2010 tax forms Prev  Up  Next   Home   More Online Publications
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The Free 2010 Tax Forms

Free 2010 tax forms 10. Free 2010 tax forms   Self-Employment (SE) Tax Table of Contents Who Must Pay SE Tax?Special Rules and Exceptions Figuring Earnings Subject to SE Tax Farm Optional Method Using Both Optional Methods Reporting Self-Employment Tax The SE tax rules apply no matter how old you are and even if you are already receiving social security and Medicare benefits. Free 2010 tax forms Who Must Pay SE Tax? Generally, you must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Free 2010 tax forms Use Schedule SE to figure net earnings from self-employment. Free 2010 tax forms Sole proprietor or independent contractor. Free 2010 tax forms   If you are self-employed as a sole proprietor or independent contractor, you generally use Schedule C or C-EZ (Form 1040) to figure your earnings subject to SE tax. Free 2010 tax forms SE tax rate. Free 2010 tax forms    For 2013, the SE tax rate on net earnings is 15. Free 2010 tax forms 3% (12. Free 2010 tax forms 4% social security tax plus 2. Free 2010 tax forms 9% Medicare tax). Free 2010 tax forms Maximum earnings subject to self-employment tax. Free 2010 tax forms    Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Free 2010 tax forms 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Free 2010 tax forms   All of your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Free 2010 tax forms 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Free 2010 tax forms   If your wages and tips are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Free 2010 tax forms 4% social security part of the SE tax on any of your net earnings. Free 2010 tax forms However, you must pay the 2. Free 2010 tax forms 9% Medicare part of the SE tax on all your net earnings. Free 2010 tax forms Special Rules and Exceptions Aliens. Free 2010 tax forms   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Free 2010 tax forms S. Free 2010 tax forms citizens. Free 2010 tax forms Nonresident aliens are not subject to SE tax unless an international social security agreement in effect determines that they are covered under the U. Free 2010 tax forms S. Free 2010 tax forms social security system. Free 2010 tax forms However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Free 2010 tax forms S. Free 2010 tax forms residents for self-employment tax purposes. Free 2010 tax forms For more information on aliens, see Publication 519, U. Free 2010 tax forms S. Free 2010 tax forms Tax Guide for Aliens. Free 2010 tax forms Child employed by parent. Free 2010 tax forms   You are not subject to SE tax if you are under age 18 and you are working for your father or mother. Free 2010 tax forms Church employee. Free 2010 tax forms    If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108. Free 2010 tax forms 28 or more in wages from the church or organization. Free 2010 tax forms For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Free 2010 tax forms Fishing crew member. Free 2010 tax forms   If you are a member of the crew on a boat that catches fish or other water life, your earnings are subject to SE tax if all the following conditions apply. Free 2010 tax forms You do not get any pay for the work except your share of the catch or a share of the proceeds from the sale of the catch, unless the pay meets all the following conditions. Free 2010 tax forms The pay is not more than $100 per trip. Free 2010 tax forms The pay is received only if there is a minimum catch. Free 2010 tax forms The pay is solely for additional duties (such as mate, engineer, or cook) for which additional cash pay is traditional in the fishing industry. Free 2010 tax forms You get a share of the catch or a share of the proceeds from the sale of the catch. Free 2010 tax forms Your share depends on the amount of the catch. Free 2010 tax forms The boat's operating crew normally numbers fewer than 10 individuals. Free 2010 tax forms (An operating crew is considered as normally made up of fewer than 10 if the average size of the crew on trips made during the last four calendar quarters is fewer than 10. Free 2010 tax forms ) Notary public. Free 2010 tax forms   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ but are not subject to self-employment tax (see the Instructions for Schedule SE (Form 1040)). Free 2010 tax forms State or local government employee. Free 2010 tax forms   You are subject to SE tax if you are an employee of a state or local government, are paid solely on a fee basis, and your services are not covered under a federal-state social security agreement. Free 2010 tax forms Foreign government or international organization employee. Free 2010 tax forms   You are subject to SE tax if both the following conditions are true. Free 2010 tax forms You are a U. Free 2010 tax forms S. Free 2010 tax forms citizen employed in the United States, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Virgin Islands by: A foreign government, A wholly-owned agency of a foreign government, or An international organization. Free 2010 tax forms Your employer is not required to withhold social security and Medicare taxes from your wages. Free 2010 tax forms U. Free 2010 tax forms S. Free 2010 tax forms citizen or resident alien residing abroad. Free 2010 tax forms    If you are a self-employed U. Free 2010 tax forms S. Free 2010 tax forms citizen or resident alien living outside the United States, in most cases you must pay SE tax. Free 2010 tax forms Do not reduce your foreign earnings from self-employment by your foreign earned income exclusion. Free 2010 tax forms Exception. Free 2010 tax forms    The United States has social security agreements with many countries to eliminate double taxation under two social security systems. Free 2010 tax forms Under these agreements, you generally must only pay social security and Medicare taxes to the country in which you live. Free 2010 tax forms The country to which you must pay the tax will issue a certificate which serves as proof of exemption from social security tax in the other country. Free 2010 tax forms   For more information, see the Instructions for Schedule SE (Form 1040). Free 2010 tax forms More Than One Business If you have earnings subject to SE tax from more than one trade, business, or profession, you must combine the net profit (or loss) from each to determine your total earnings subject to SE tax. Free 2010 tax forms A loss from one business reduces your profit from another business. Free 2010 tax forms Community Property Income If any of the income from a trade or business, other than a partnership, is community property income under state law, it is included in the earnings subject to SE tax of the spouse carrying on the trade or business. Free 2010 tax forms Gain or Loss Do not include in earnings subject to SE tax a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. Free 2010 tax forms It does not matter whether the disposition is a sale, exchange, or an involuntary conversion. Free 2010 tax forms Lost Income Payments If you are self-employed and reduce or stop your business activities, any payment you receive from insurance or other sources for the lost business income is included in earnings subject to SE tax. Free 2010 tax forms If you are not working when you receive the payment, it still relates to your business and is included in earnings subject to SE tax, even though your business is temporarily inactive. Free 2010 tax forms Figuring Earnings Subject to SE Tax Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Free 2010 tax forms The regular method. Free 2010 tax forms The nonfarm optional method. Free 2010 tax forms The farm optional method. Free 2010 tax forms You must use the regular method unless you are eligible to use one or both of the optional methods. Free 2010 tax forms Why use an optional method?    You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Free 2010 tax forms You want to receive credit for social security benefit coverage. Free 2010 tax forms You incurred child or dependent care expenses for which you could claim a credit. Free 2010 tax forms (An optional method may increase your earned income, which could increase your credit. Free 2010 tax forms ) You are entitled to the earned income credit. Free 2010 tax forms (An optional method may increase your earned income, which could increase your credit. Free 2010 tax forms ) You are entitled to the additional child tax credit. Free 2010 tax forms (An optional method may increase your earned income, which could increase your credit. Free 2010 tax forms ) Effects of using an optional method. Free 2010 tax forms   Using an optional method could increase your SE tax. Free 2010 tax forms Paying more SE tax could result in your getting higher benefits when you retire. Free 2010 tax forms   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller tax or no tax using the regular method. Free 2010 tax forms   The optional methods may be used only to figure your SE tax. Free 2010 tax forms To figure your income tax, include your actual earnings in gross income, regardless of which method you use to determine SE tax. Free 2010 tax forms Regular Method Multiply your total earnings subject to SE tax by 92. Free 2010 tax forms 35% (. Free 2010 tax forms 9235) to get your net earnings under the regular method. Free 2010 tax forms See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Free 2010 tax forms Net earnings figured using the regular method are also called actual net earnings. Free 2010 tax forms Nonfarm Optional Method Use the nonfarm optional method only for earnings that do not come from farming. Free 2010 tax forms You may use this method if you meet all the following tests. Free 2010 tax forms You are self-employed on a regular basis. Free 2010 tax forms This means that your actual net earnings from self-employment were $400 or more in at least 2 of the 3 tax years before the one for which you use this method. Free 2010 tax forms The net earnings can be from either farm or nonfarm earnings or both. Free 2010 tax forms You have used this method less than 5 years. Free 2010 tax forms (There is a 5-year lifetime limit. Free 2010 tax forms ) The years do not have to be one after another. Free 2010 tax forms Your net nonfarm profits were: Less than $5,024, and Less than 72. Free 2010 tax forms 189% of your gross nonfarm income. Free 2010 tax forms Net nonfarm profits. Free 2010 tax forms   Net nonfarm profit generally is the total of the amounts from: Line 31, Schedule C (Form 1040), Line 3, Schedule C-EZ (Form 1040), Box 14, code A, Schedule K-1 (Form 1065) (from nonfarm partnerships), and Box 9, code J1, Schedule K-1 (Form 1065-B). Free 2010 tax forms   However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Free 2010 tax forms Gross nonfarm income. Free 2010 tax forms   Your gross nonfarm income generally is the total of the amounts from: Line 7, Schedule C (Form 1040), Line 1, Schedule C-EZ (Form 1040), Box 14, code C, Schedule K-1 (Form 1065) (from nonfarm partnerships), and Box 9, code J2, Schedule K-1 (Form 1065-B). Free 2010 tax forms Figuring Nonfarm Net Earnings If you meet the three tests explained earlier, use the following table to figure your net earnings from self-employment under the nonfarm optional method. Free 2010 tax forms Table 10-1. Free 2010 tax forms Figuring Nonfarm Net Earnings IF your gross nonfarm income is. Free 2010 tax forms . Free 2010 tax forms . Free 2010 tax forms THEN your net earnings are equal to. Free 2010 tax forms . Free 2010 tax forms . Free 2010 tax forms $6,960 or less Two-thirds of your gross nonfarm income. Free 2010 tax forms More than $6,960 $4,640 Actual net earnings. Free 2010 tax forms   Your actual net earnings are 92. Free 2010 tax forms 35% of your total earnings subject to SE tax (that is, multiply total earnings subject to SE tax by 92. Free 2010 tax forms 35% (. Free 2010 tax forms 9235) to get actual net earnings). Free 2010 tax forms Actual net earnings are equivalent to net earnings figured using the regular method. Free 2010 tax forms Optional net earnings less than actual net earnings. Free 2010 tax forms   You cannot use this method to report an amount less than your actual net earnings from self-employment. Free 2010 tax forms Gross nonfarm income of $6,960 or less. Free 2010 tax forms   The following examples illustrate how to figure net earnings when gross nonfarm income is $6,960 or less. Free 2010 tax forms Example 1. Free 2010 tax forms Net nonfarm profit less than $5,024 and less than 72. Free 2010 tax forms 189% of gross nonfarm income. Free 2010 tax forms Ann Green runs a craft business. Free 2010 tax forms Her actual net earnings from self-employment were $800 in 2011 and $900 in 2012. Free 2010 tax forms She meets the test for being self-employed on a regular basis. Free 2010 tax forms She has used the nonfarm optional method less than 5 years. Free 2010 tax forms Her gross income and net profit in 2013 are as follows: Gross nonfarm income $5,400 Net nonfarm profit $1,200 Ann's actual net earnings for 2013 are $1,108 ($1,200 × . Free 2010 tax forms 9235). Free 2010 tax forms Because her net profit is less than $5,024 and less than 72. Free 2010 tax forms 189% of her gross income, she can use the nonfarm optional method to figure net earnings of $3,600 (2/3 × $5,400). Free 2010 tax forms Because these net earnings are higher than her actual net earnings, she can report net earnings of $3,600 for 2013. Free 2010 tax forms Example 2. Free 2010 tax forms Net nonfarm profit less than $5,024 but not less than 72. Free 2010 tax forms 189% of gross nonfarm income. Free 2010 tax forms Assume that in Example 1 Ann's gross income is $1,000 and her net profit is $800. Free 2010 tax forms She must use the regular method to figure her net earnings. Free 2010 tax forms She cannot use the nonfarm optional method because her net profit is not less than 72. Free 2010 tax forms 189% of her gross income. Free 2010 tax forms Example 3. Free 2010 tax forms Net loss from a nonfarm business. Free 2010 tax forms Assume that in Example 1 Ann has a net loss of $700. Free 2010 tax forms She can use the nonfarm optional method and report $3,600 (2/3 × $5,400) as her net earnings. Free 2010 tax forms Example 4. Free 2010 tax forms Nonfarm net earnings less than $400. Free 2010 tax forms Assume that in Example 1 Ann has gross income of $525 and a net profit of $175. Free 2010 tax forms In this situation, she would not pay any SE tax under either the regular method or the nonfarm optional method because her net earnings under both methods are less than $400. Free 2010 tax forms Gross nonfarm income of more than $6,960. Free 2010 tax forms   The following examples illustrate how to figure net earnings when gross nonfarm income is more than $6,960. Free 2010 tax forms Example 1. Free 2010 tax forms Net nonfarm profit less than $5,024 and less than 72. Free 2010 tax forms 189% of gross nonfarm income. Free 2010 tax forms John White runs an appliance repair shop. Free 2010 tax forms His actual net earnings from self-employment were $10,500 in 2011 and $9,500 in 2012. Free 2010 tax forms He meets the test for being self-employed on a regular basis. Free 2010 tax forms He has used the nonfarm optional method less than 5 years. Free 2010 tax forms His gross income and net profit in 2013 are as follows: Gross nonfarm income $12,000 Net nonfarm profit $1,200 John's actual net earnings for 2013 are $1,108 ($1,200 × . Free 2010 tax forms 9235). Free 2010 tax forms Because his net profit is less than $5,024 and less than 72. Free 2010 tax forms 189% of his gross income, he can use the nonfarm optional method to figure net earnings of $4,640. Free 2010 tax forms Because these net earnings are higher than his actual net earnings, he can report net earnings of $4,640 for 2013. Free 2010 tax forms Example 2. Free 2010 tax forms Net nonfarm profit not less than $5,024. Free 2010 tax forms Assume that in Example 1 John's net profit is $5,400. Free 2010 tax forms He must use the regular method. Free 2010 tax forms He cannot use the nonfarm optional method because his net nonfarm profit is not less than $5,024. Free 2010 tax forms Example 3. Free 2010 tax forms Net loss from a nonfarm business. Free 2010 tax forms Assume that in Example 1 John has a net loss of $700. Free 2010 tax forms He can use the nonfarm optional method and report $4,640 as his net earnings from self-employment. Free 2010 tax forms Farm Optional Method Use the farm optional method only for earnings from a farming business. Free 2010 tax forms See Publication 225 for information about this method. Free 2010 tax forms Using Both Optional Methods If you have both farm and nonfarm earnings, you may be able to use both optional methods to determine your net earnings from self-employment. Free 2010 tax forms To figure your net earnings using both optional methods, you must: Figure your farm and nonfarm net earnings separately under each method. Free 2010 tax forms Do not combine farm earnings with nonfarm earnings to figure your net earnings under either method. Free 2010 tax forms Add the net earnings figured under each method to arrive at your total net earnings from self-employment. Free 2010 tax forms You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Free 2010 tax forms If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Free 2010 tax forms Example. Free 2010 tax forms You are a self-employed farmer. Free 2010 tax forms You also operate a retail grocery store. Free 2010 tax forms Your gross income, actual net earnings from self-employment, and optional farm and optional nonfarm net earnings from self-employment are shown in Table 10-2. Free 2010 tax forms Table 10-2. Free 2010 tax forms Example—Farm and Nonfarm Earnings Income and Earnings Farm Nonfarm Gross income $3,000 $6,000 Actual net earnings $900 $500 Optional net earnings (2/3 of gross income) $2,000 $4,000 Table 10-3 shows four methods or combinations of methods you can use to figure net earnings from self-employment using the farm and nonfarm gross income and actual net earnings shown in Table 10-2. Free 2010 tax forms Method 1. Free 2010 tax forms Using the regular method for both farm and nonfarm income. Free 2010 tax forms Method 2. Free 2010 tax forms Using the optional method for farm income and the regular method for nonfarm income. Free 2010 tax forms Method 3. Free 2010 tax forms Using the regular method for farm income and the optional method for nonfarm income. Free 2010 tax forms Method 4. Free 2010 tax forms Using the optional method for both farm and nonfarm income. Free 2010 tax forms Note. Free 2010 tax forms Actual net earnings is the same as net earnings figured using the regular method. Free 2010 tax forms Table 10-3. Free 2010 tax forms Example—Net Earnings Net Earnings 1 2 3 4 Actual  farm $ 900   $ 900   Optional  farm   $ 2,000   $ 2,000 Actual nonfarm $ 500 $ 500     Optional nonfarm     $4,000 $4,000 Amount you can report: $1,400 $2,500 $4,900 $4,640* *Limited to $4,640 because you used both optional methods. Free 2010 tax forms Fiscal Year Filer If you use a tax year other than the calendar year, you must use the tax rate and maximum earnings limit in effect at the beginning of your tax year. Free 2010 tax forms Even if the tax rate or maximum earnings limit changes during your tax year, continue to use the same rate and limit throughout your tax year. Free 2010 tax forms Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Free 2010 tax forms Then enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Free 2010 tax forms Most taxpayers can use Section A—Short Schedule SE to figure their SE tax. Free 2010 tax forms However, certain taxpayers must use Section B—Long Schedule SE. Free 2010 tax forms If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Free 2010 tax forms Joint return. Free 2010 tax forms   Even if you file a joint return, you cannot file a joint Schedule SE. Free 2010 tax forms This is true whether one spouse or both spouses have earnings subject to SE tax. Free 2010 tax forms If both of you have earnings subject to SE tax, each of you must complete a separate Schedule SE. Free 2010 tax forms However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Free 2010 tax forms Attach both schedules to the joint return. Free 2010 tax forms More than one business. Free 2010 tax forms   If you have more than one trade or business, you must combine the net profit (or loss) from each business to figure your SE tax. Free 2010 tax forms A loss from one business will reduce your profit from another business. Free 2010 tax forms File one Schedule SE showing the earnings from self-employment, but file a separate Schedule C, C-EZ, or F for each business. Free 2010 tax forms Example. Free 2010 tax forms You are the sole proprietor of two separate businesses. Free 2010 tax forms You operate a restaurant that made a net profit of $25,000. Free 2010 tax forms You also have a cabinetmaking business that had a net loss of $500. Free 2010 tax forms You must file a Schedule C for the restaurant showing your net profit of $25,000 and another Schedule C for the cabinetmaking business showing your net loss of $500. Free 2010 tax forms You file Schedule SE showing total earnings subject to SE tax of $24,500. Free 2010 tax forms Prev  Up  Next   Home   More Online Publications