Self-Employed Taxpayer

A taxpayer who derives his/her income from his/her own business or from work as an independent contractor. In the United States, self-employed taxpayers pay double the social security tax of employed persons, but are entitled to more tax deductions. One calculates self-employed income by taking one's gross income and deducting all business expenses. For example, a self-employed taxpayer working from home may deduct a certain percentage of his/her rent or mortgage and not pay taxes on that portion of his/her income. Self-employed income is reported to the IRS on Schedule C of the 1040 Form.

单词	self-employed taxpayer
释义	Self-Employed Taxpayer Self-Employed Taxpayer A taxpayer who derives his/her income from his/her own business or from work as an independent contractor. In the United States, self-employed taxpayers pay double the social security tax of employed persons, but are entitled to more tax deductions. One calculates self-employed income by taking one's gross income and deducting all business expenses. For example, a self-employed taxpayer working from home may deduct a certain percentage of his/her rent or mortgage and not pay taxes on that portion of his/her income. Self-employed income is reported to the IRS on Schedule C of the 1040 Form.
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