Question:   I am self-employed. How do I report my income and how do I pay Medicare and social security taxes?

Answer:   Your self-employment income is reported on Form 1040, Schedule C (PDF), Profit or Loss from Business, or on Form 1040, Schedule C-EZ (PDF), Net Profit from Business.

Your Medicare and social security taxes are reported on Form 1040, Schedule SE (PDF), Self-Employment Tax.

As a self-employed person:

• You pay your Medicare and social security taxes the same way you pay your income taxes.
• You can pay them when you file your income tax return if you expect to owe less than $1,000 in total taxes.
• You will need to make estimated tax payments if you expect to owe $1,000 or more in total taxes,. These payments are made quarterly using Form 1040-ES (PDF), Estimated Tax for Individuals. You will need to figure these taxes at the beginning of the year.