Does filing DBA form automatically makes me pay self employment taxes?
Question:
My question is: If I file a DBA, does this mean that I would automatically have to fill out a Schedule C with 0 income on it, because all I need the DBA for is to establish my presence on the web.
Thank you
Answer:
Is your online business part of your work as a statutory employee? If so, then you would put these expenses on the same Schedule C as you use for your statutory employee expenses. The DBA designation does not establish a second income activity for you.
If the online business generates income other than from your employment, then your would need a second Schedule C to record your income and expenses from the online business. Social Security and Medicare taxes of 15.3% would be due on this income. From the wording of your question, this does not appear to be the case.
As another self-employed person, I answered these questions like this:
unemployment ... not covered and so no tax
social security and medicare ... obviously due, use schedule in 1040 package
what other self-employment taxes are there in your state?
Given the facts as stated, the answer is NO!! with a proviso:
If the web-generated income is separate from your employer it is then self-employment income. So long as you do it in your capacity as an employee no S/E tax comes into play.
If you want to claim the expenses you are going to have file something that show your income.
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