Forms for sole proprietorship

If you are an employer, you must file a quarterly Form 941 to report:

• Wages you have paid,
• Tips your employees have received,
• Federal income tax you withheld,
• Both employer’s and employee’s share of social security and Medicare taxes, and

After you file your first Form 941, you must file a return each quarter even if you have no taxes to report, unless you are filing a final return or meet one of the exceptions.

This form was designed so the smallest employers (those whose annual liability for Social Security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.

The IRS will notify those employers who will qualify to file Form 944 in February of each year.

Important: Every corporation must file Forms 1099-MISC if, in the course of its trade or business, it makes payments of rents, commissions, or other fixed or determinable income (see section 6041) totaling $600 or more to any one person during the calendar year.

Also use these returns to report amounts received as a nominee for another person. For more details, see the General Instructions for Forms 1099, 1098, 5498, and W-2G.

Report the following:

• Acquisitions or abandonments of secured property;
• Proceeds from broker and barter exchange transactions;
• Cancellation of debts;
• Changes in corporate control and capital structure;
• Dividends and distributions;
• Interest income;
• Payments of long-term care and accelerated death benefits;
• Miscellaneous income payments to certain fishing boat crew members, to providers of health and medical services, of rent or royalties, of nonemployee compensation, etc.;
• Original issue discount;
• Taxable distributions received from cooperatives;
• Distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc.;
• Proceeds from real estate transactions; and
• Distributions from an HSA, Archer MSA, or Medicare Advantage MSA.

• The sale and exchange of:
  1. Property used in your trade or business;
  2. Depreciable and amortizable property;
  3. Oil, gas, geothermal, or other mineral properties; and
  4. Section 126 property.
• The involuntary conversion (from other than casualty or theft) of property used in your trade or business or a transaction entered into for profit.
• The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business.)
• The disposition of capital assets not reported on Schedule D.
• The gain or loss (including any related recapture) for partners and S corporation shareholders form certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations.
• The computation of recapture amounts under section 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less.

Use Form 8829 to figure the allowable expenses for business use of your home on Schedule C (Form1040 or 1040-SR) and any carryover to amounts not deductible in the prior year.

If all of the expenses for business use of your home are properly allocable in inventory costs, do not complete Form 8829. These expenses are figured in Schedule C, Part III.

Note: If you are claiming expenses for business use of your home as an employee or a partner, or you are claiming these expenses on Schedule F (Form 1040) do not use form 8829. Instead, complete the worksheet in Publication 587, Business Use of Your Home.