For U.S. Territory residents not required to file a U.S. income tax return, filing IRS Form 1040-SS (U.S. Self-Employment Tax Return) reports earnings and allows claiming of certain credits, payment of Social Security and Medicare taxes, and eligibility for certain benefits.
What is Form 1040-SS?
Form 1040-SS is a tax return form required of those who are self-employed in certain U.S. territories, including the U.S. Virgin Islands, American Samoa, Puerto Rico, the Commonwealth of the Northern Mariana Islands, and Guam. This official IRS form enables individuals to report their earnings and is necessary to be able to claim credits, pay their Social Security and Medicare taxes, and potentially receive benefits under the programs. In order to be compliant, individuals must follow the instructions provided carefully and must file their 1040-SS by April 15th, though those who are unable to may be granted an extension. Furthermore, up to $128,400 of the self-employment income is subject to Social Security. Form 1040-PR is also available for Spanish-speaking residents of Puerto Rico. Individuals must also use Form 1040-ES to calculate their estimated tax and make payments.
IRS Form 1040-SS – Who Needs to Fill It Out?
IRS Form 1040-SS should be filled out by those self-employed in certain US Territories who are not required by law to file a regular US income tax return. This form is used to report total wages earned from self-employment, pay applicable income taxes, pay Social Security and Medicare taxes, and claim certain credits or benefits. To fill the form out correctly, the IRS provides instructions in both English and Spanish. Additionally, taxpayers in Puerto Rico who do not speak English or prefer Spanish can file Form 1040-PR. Finally, those who cannot meet the April 15th filing date may be granted an extension.
Step-by-Step: Form 1040-SS Instructions For Filling Out the Document
Filing IRS Form 1040-SS is a simple step-by-step process. First, you will need to accurately report your earnings on the 1040-SS form if you are self-employed in a U.S. Territory and not required to file a standard U.S. income tax return. Additionally, you should review the IRS instructions available in English or Spanish to ensure you complete the form correctly. Pay special attention to filing deadlines and if an extension is required, apply for it accordingly. Once you’ve calculated your SE tax, net earnings, and net profit or loss, mail-in or e-file the form with the necessary information. Furthermore, you may need to file an income tax return with the government in the U.S. Territory you are residing in. Lastly, use the 1040-ES to calculate and make your payments with the corresponding payment voucher.
Below, we present a table that will help you understand how to fill out Form 1040-SS.
| Information Required for IRS Form 1040-SS | Details |
|---|---|
| Self-Employment Status | For individuals self-employed in a U.S. Territory |
| Requirement to File a U.S. Income Tax Return | Check if you are required to file a standard U.S. income tax return |
| IRS Instructions | Review IRS instructions in English or Spanish |
| Filing Deadlines | Be aware of filing deadlines and apply for extensions if needed |
| SE Tax Calculation | Calculate your Self-Employment tax |
| Net Earnings | Calculate your net earnings |
| Net Profit or Loss | Calculate your net profit or loss |
| Filing Method | Choose between mail-in or e-filing the form |
| Income Tax Return in U.S. Territory | File an income tax return in your residing U.S. Territory |
| 1040-ES | Use the 1040-ES for tax calculation and payments |
Do You Need to File Form 1040-SS Each Year?
Do You Need to File Form 1040-SS Each Year? If you’re a self-employed U.S. citizen in certain U.S. territories, such as the U.S. Virgin Islands, American Samoa, Puerto Rico, the Commonwealth of the Northern Mariana Islands, and Guam, you must file IRS Form 1040-SS (U.S. Self-Employment Tax Return) each year to report your earnings. This form helps the government determine how much you owe for income taxes, Social Security, and Medicare taxes, and if you’re eligible for certain benefits. When filing Form 1040-SS, you must provide income and expense information, calculate your profits and losses, and SE tax. The form must be filed by April 15th (or the next following business day if it falls on a weekend or holiday) and can either be e-filed or mailed in to the IRS. A payment voucher found on Form 1040-ES must be used when making payments with a check or money order.
Download the official IRS Form 1040-SS PDF
On the official IRS website, you will find a link to download Form 1040-SS (U.S. Self-Employment Tax Return). However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1040-SS
Sources:
https://www.irs.gov/forms-pubs/about-form-1040-ss
https://www.irs.gov/instructions/i1040ss
