Tax Preparer how-to

How to Prepare a Return with Self-Employment Income

Side businesses add forms and opportunities for deductions.

Updated By the Career Education Institute Curriculum Team
Quick answer

Side businesses add forms and opportunities for deductions. In short: gather; list; enter, then complete the remaining steps below.

Step by step

  1. Gather 1099s and business income records.

  2. List business expenses by category.

  3. Enter income and expenses on Schedule C.

  4. Calculate self-employment tax.

  5. Consider deductions such as the qualified business income deduction.

  6. Explain estimated tax payments for next year.

Safety reminders for tax preparers

  • Protect client data with secure systems
  • Verify client identity to prevent fraud
  • Follow IRS data security requirements
  • Take breaks during long tax-season days

PTIN · W-2 · 1099 · Standard deduction · Itemized deductions · Tax credit: see the full tax preparer glossary.

More tax preparer how-to guides

Learn this in Tax Preparer trainingTake the practice test
Enroll in trainingTake fit quiz