Business & Self-Employment

Topics covered:

How can I tell if I am self-employed?

If you working for yourself as a freelancer or the owner of a small business rather than for an employer, then you are self-employed. 

IRS has a big write-up about this, but if you are uncertain, just ask us and we will tell you if you should be considered self-employed. 

Reporting Your Investments

Earnings from a business that I am an owner but not directly involved in the day to day business.

If the business is incorporated we will determine your earnings based on the corporate return. Report in on  Income > Corporation & Trust > Foreign Corporation tab

Report it on  Income > Self-Employment tab. Indicate your service. 

I own a business and draw dividends.

Owners' draw of is dividends reported the same way as other dividends ( Income > Passive Income > Dividends).

If U.S. business - section U.S. dividends

If Controlled Foreign Corporation  - section Foreign dividends.

Where do I enter K1 information from my Master Limited Partnership (MLP)?

Report it on Income > Other Income, question Do you own a share (interest) in S-Corp or Partnership (whether US or Foreign)? In the US you would have received a K-1 Form for it.

I'm a Sole Trader in the UK. How should I report my income?

The sole trader is reported as self-employment income. Report it on  Income > Self-Employment tab. Indicate your service. 

How do I report performance-based shares that vested this year from my employer?

Report it on Income > Wages > Income Outside of the U.S. tab, question Did you receive stock-based compensation from your employer? Please upload supporting documentation.

Investment income - dividends, interest, capital gains, etc.

Report it on Income > Passive Income > Interest, Dividends, or Income > Investments tabs. Please note: if you filing jointly there are subtabs for both primary and spouse.

I work in private equity and receive carried interest

Report in on Income > Investments, question Did you sell any securities (ie stocks or bonds) during the filing year?

Sale of stock holdings

Report it on Passive income > Investments, question Did you sell any securities (ie stocks or bonds) during the filing year?

I have an investment held in trust for me. Do I have to report it on FBAR?

The need to file FBAR by the beneficiary of the foreign trust depends on the trust rules for income distribution to the U.S. beneficiary.

The decision on whether to report it is arrived using the following logic:

  • If the trust discretionary (i.e. trust distributions are made as the decision of trustee) ==> then the trust is not reported.
  • If the trust is not discretionary (i.e. the beneficiary has discretion about distributions) then it must ONLY be reported if the beneficiary receives more than 50% of trust's current income.

What is included in gross wages / gross income?

Gross wages means the total amount earned before any contributions or deductions taken out of that income.

For example, it means income before working expenses AND before taxes.

Where can I find the Self-employment tab?

As you start the Tax Questionnaire, please indicate that you 're self-employed. You may also add information about your self-employment income while working on your TQ. Simply click  Change Income Types button at the left. 

Next, you will see  Self-Employment tab in the Income section at the left.

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.

Still need help? Contact Us Contact Us