When Must Self-Employed File Taxes and Get EIN

By | November 24, 2015

When does a self-employed individual files taxes?

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirements listed in the Form 1040 instructions. So what if you work for somebody else and you’re also self-employed. If, in addition to your self-employment income you receive wages, then subtract those wages from your total income to figure out how much self-employment income is subject to the taxes.

What is Schedule SE?

If you have income subject to self-employment tax, figure the tax on Schedule SE. If you have more than one business, use one Schedule SE and combine the profits and losses from all of your businesses.

What is a Federal employer identification number or EIN?

As a business owner, you may be required to get a Federal employer identification number, commonly referred to as the EIN. The EIN identifies tax returns filed with the IRS. If you don’t have an EIN, you need to get one if you pay wages to employees, have a self-employed retirement plan, operate your business as a corporation or partnership, or are required to file any of these tax returns: employment, excise, judiciary, or alcohol, tobacco and firearms. The fastest and easiest way to get an EIN is online at www.irs.gov. Type EIN in the Search box.

Applying for an EIN Number on IRS Wesbite

The EIN is issued immediately once the application information is validated. EIN can also be obtained by mailing or faxing Form SS-4, the Application for Employer Identification Number. See the form instructions for details.

When you don’t need an EIN?

If you don’t need an EIN, generally you use your Social Security number as your taxpayer identification number. You must put this number on each of your individual tax forms, such as Form 1040 and its Schedules. If you must have an EIN, include it along with your Social Security number on your Schedule C or C-EZ.