20 year old son taxes no one claiming him?

When and IF he is NOT a qualifying dependent of another taxpayer for the tax year he would file his own 1040 income tax return the same as any other taxpayer and fill it out correctly and completely sign the completed income tax return and print 1 copy for his records and send the other signed copy to the correct IRS address.

When you have a business operation ongoing you really do need to fill out the schedule C of the 1040 income tax return and once you have a NET profit more than 400 you will be required to fill out and file the schedule SE to determine yourself employment tax. Social security and medicare taxes on the NET PROFIT amount.

Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.

You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business

http://www.irs.gov/instructions/i1040sc/index.html

Specific Instructions

http://www.irs.gov/instructions/i1040sc/ch02.html

BUT GOOD detailed records are really necessary for your business operation to succeed.

For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.

Use the search box at www.irs.gov for Publications and Forms for the Self-Employed

http://www.irs.gov/businesses/small/article/0,,id=...

Key words are good detailed records of all ordinary and necessary expenses of the business operation and a daily detailed mileage record or log of all business miles and all personal mileage that the vehicle is actually used for each purpose to help you determine your actual percentage of business use and in the event that you need the written records at some future time you would have them available to you.

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

http://www.irs.gov/businesses/small/index.html

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful for your situation and good luck to you.

He will owe self-employment tax of approximately 13% of his net profit from self-employment. It's the self-employed's counterpart to FICA withholding if you're an employee, except you have to pay both sides of it. As an employee your employer matches half.

On $8,000 that would be close to $1,100 in self-employment tax.

Self-employment tax is in addition to income tax.

If nobody is ELIGIBLE to claim him as a dependent (whether they actuall claim him or not) he has a standard deduction of $5,700 and an exemption amount of $3,650. That would reduce his taxable income below zero, so no income tax due. But self-employment tax is still due. It's figured before the deductions and exemptions.

he files a Sch C on the $8000 and he probably will owe his self employment tax, approx.15.3% of the Sch C net

half of this amount is a credit to reduce his gross income and if he is not a dependent of anyone his non taxable income is $9350 so there will likely be no income tax but the se tax has to be paid

Your son needs to file a Form 1040 as his basic form, Schedule C or C-EZ to report self employment income and expenses, and Schedule SE to determine self employment tax. Although he will not owe any federal income tax, he will owe approximately $1,125 in self employment tax.

He should do his tax return. He will owe the 15% self employment taxes at minimum.