I was wondering if someone ins Steemit community could help me with the tax quuestion.
In 2016 I’ve done some work as a consultant and received a 1099 form that enlists my earnings. At first I wanted to add this to my other earnings in line 7 of 1040. Then I noticed that no tax has been withheld. Thus, I must use the schedule SE
The schedule SE determines self-employment tax based on quite simple calculation.
Once you do that the amount of the tax goes to the line 57 of 1040.
That means that you seemingly cannot offset it with any expenses because expenses only can offset your adjusted gross income and as it appears the self-employment income isn’t a part of it.
Well, ok, I made a relatively small amount of money as per this consulting job. What about all these people who make a living doing this? Does it mean they cannot write off their expenses? Doesn’t make sense.
Is there a good Samaritan in the Steemit community who can tell me,
which form I must file that will enable me to write off my expenses toward my self-employment earnings?
Your input is much appreciated.