This part explains whether you have to file an income tax return
and when you file it. It also explains how you pay the tax.
Do I Have To File
an Income Tax Return?
You have to file an income tax return for 2001 if your net earnings
from self-employment were $400 or more. If your net earnings from
self-employment were less than $400, you still have to file an income
tax return if you meet any other filing requirement listed in the Form
1040 instructions.
How Do I File?
File your income tax return on Form 1040 and attach
Schedule C
or Schedule C-EZ.
Enter the net profit or
loss from Schedule C or Schedule C-EZ on page 1 of Form 1040.
Use Schedule C to figure your net profit or loss from your business.
If you operated more than one business as a sole proprietorship, you
must attach a separate Schedule C for each business. You can use the
simpler Schedule C-EZ if you operated only one business as a
sole proprietorship, you did not have a net loss, and you meet the
other requirements listed in Part I of the schedule. (Part I of
Schedule C-EZ is printed in chapter 10.)
What are my filing options?
You may be able to file a paperless return using IRS e-file
(electronic filing). This includes the following options.
- Using a tax professional who is an authorized IRS
e-file provider.
- Using your personal computer.
- Using a telephone (TeleFile).
For details about IRS e-file, see the Form 1040
instructions.
When is my tax return due?
Form 1040 for calendar year 2001 is due by April 15, 2002. If you
use a fiscal year (explained in chapter 2), your return is due by the
15th day of the 4th month after the end of your fiscal year. If you
file late, you may have to pay penalties and interest. If you cannot
file your return on time, use Form 4868, Application
for Automatic Extension of Time To File U.S. Individual Income Tax
Return, to request an automatic 4-month extension.
How Do I Pay Income Tax?
Federal income tax is a pay-as-you-go tax. You must pay it as you
earn or receive income during the year. An employee usually has income
tax withheld from his or her pay. If you do not pay your tax through
withholding, or do not pay enough tax that way, you might have to pay
estimated tax. You generally have to make estimated tax payments if
you expect to owe taxes, including self-employment tax (discussed
later), of $1,000 or more when you file your return. Use Form
1040-ES to figure and pay the tax. If you do not have to
make estimated tax payments, you may pay any tax due when you file
your return. For more information on estimated tax, see Publication 505.
Penalty for underpayment of tax.
If you did not pay enough income tax and self-employment tax for
2001 by withholding or by making estimated tax payments, you may have
to pay a penalty on the amount not paid. The IRS will figure the
penalty for you and send you a bill. Or you can use Form 2210,
Underpayment of Estimated Tax by Individuals, Estates, and
Trusts, to see if you have to pay a penalty and to figure the
penalty amount. For more information, see Publication 505.
Table 1-1. Which forms must I file?
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