Self-Employment Tax Checklist: What Records You Need Before Filing

Official Source Basis

This checklist follows documentation and recordkeeping requirements described by the Internal Revenue Service in the
IRS Publication 334 — Tax Guide for Small Business,
the Instructions for Schedule SE (Form 1040),
the Instructions for Schedule C (Form 1040),
and IRS Publication 463 — Travel, Gift, and Car Expenses.
These official sources explain income reporting, deductible expenses, and required supporting records.

Why Record Preparation Matters for Self-Employment Tax

Self-employment tax is calculated using net earnings from business activities.
Incomplete records can lead to incorrect tax calculations or missed deductions.
The IRS requires taxpayers to maintain documentation supporting both income and expenses reported on a tax return.

Self-Employment Tax Checklist Before Filing

Business Income Records

Self-employed taxpayers must report all business income received during the year.
Income documentation should match information returns provided to the IRS.

• Forms 1099-NEC reporting nonemployee compensation
• Forms 1099-K when payment platforms report transactions
• Invoices issued to clients or customers
• Bank deposit records related to business income
• Sales reports or accounting summaries

Business Expense Documentation

Business expenses reduce net earnings before self-employment tax is calculated.
IRS Publication 334 explains that expenses must be ordinary and necessary for the business.

• Receipts for supplies and operating expenses
• Software or subscription payments
• Professional service fees
• Advertising and marketing costs
• Insurance related to business activities
• Office expenses and equipment purchases

Vehicle and Travel Records

Taxpayers claiming vehicle or travel deductions must maintain supporting documentation as described in IRS Publication 463.
Accurate logs are required when mileage deductions are claimed.

• Business mileage logs
• Travel dates and business purpose records
• Parking and toll receipts
• Transportation and lodging expenses when applicable

Home Office Records

Self-employed individuals claiming a home office deduction must maintain documentation showing business use of the space.
IRS rules require the area to be used regularly and exclusively for business.

• Square footage calculations
• Rent or mortgage payment records
• Utility expenses
• Internet service costs when applicable
• Property tax or insurance records related to the home

Asset and Equipment Purchases

Equipment and larger purchases may require depreciation reporting.
Supporting records help determine deduction methods allowed under IRS rules.

• Purchase invoices for equipment or machinery
• Date assets were placed in service
• Cost documentation
• Prior depreciation schedules if applicable

Estimated Tax Payment Records

Self-employed taxpayers often make quarterly estimated payments covering income tax and self-employment tax obligations.
Payment tracking helps ensure accurate reporting when filing.

• Federal estimated tax payments made using Form 1040-ES
• State estimated tax payments
• Extension payments if filed
• Prior year overpayments applied forward

Tracking payments during the year using the
Estimated Tax Planner (#13)
can help reduce underpayment penalties.

Health Insurance and Retirement Contributions

Certain payments may affect adjusted gross income calculations for self-employed taxpayers.
Documentation should be available before filing.

• Self-employed health insurance premium records
• SEP-IRA or Solo 401(k) contribution records
• Health Savings Account contribution documentation

Prior Year Tax Return

Keeping the previous tax return available helps complete several filing steps and supports carryforward calculations.

• Prior year adjusted gross income for e-file verification
• Carryforward losses or credits
• Depreciation schedules
• Estimated tax reference information

Preparation worksheets available on the 1040 Excel preparation page can help organize records before filing.

Common Recordkeeping Mistakes

IRS guidance notes that poor documentation is a common issue among self-employed taxpayers.
Maintaining organized records throughout the year helps prevent filing problems.

• Mixing personal and business expenses
• Missing income reported on Forms 1099
• Failing to keep receipts for deductions
• Not maintaining mileage documentation
• Forgetting estimated payment records

When Self-Employment Tax Is Filed

Self-employment tax is calculated using Schedule SE and reported together with Form 1040.
According to IRS filing rules, taxes owed for the tax year are generally due when the annual return is filed.
Estimated payments may also be required during the year to avoid penalties.

Final Thoughts

Accurate record preparation makes filing easier for freelancers and small business owners.
Following IRS documentation guidance helps ensure income and deductions are reported correctly.
Organized bookkeeping remains one of the most effective ways to manage self-employment tax obligations each year.