What Is Form 1040-SS and Who Is Required to File It?

Form 1040-SS, the U.S. Self-Employment Tax Return, is a specific tax document for individuals in certain U.S. territories. Its main function is to report net earnings from self-employment to calculate and pay Social Security and Medicare taxes. The Social Security Administration uses this information to determine an individual’s eligibility for benefits. Filing this form also allows eligible individuals to claim certain tax credits.

Determining Your Filing Requirement

Filing Form 1040-SS is a requirement for self-employed individuals residing in specific U.S. territories who are not otherwise required to file a standard U.S. income tax return, like Form 1040. This form applies if you are a resident of:

• American Samoa
• The Commonwealth of the Northern Mariana Islands
• Guam
• Puerto Rico
• The U.S. Virgin Islands

The income threshold that requires filing Form 1040-SS is net earnings of $400 or more from self-employment activities as a sole proprietor or independent contractor. A different threshold of $108.28 applies to income earned as a church employee. Even if you are already receiving Social Security or Medicare benefits, you are still required to file and pay self-employment taxes if you meet the income criteria.

A resident of these territories will file the standard Form 1040 instead of Form 1040-SS if they have other U.S. income tax filing obligations. For instance, if your worldwide income meets the filing thresholds for Form 1040, you must file that form to report all your income, including self-employment earnings. In such cases, self-employment tax is calculated using Schedule SE (Form 1040).

Information Needed to Complete Form 1040-SS

The form begins with a section for your personal details. You will need to provide your full name as it appears on your Social Security card, your complete mailing address within the territory, and your U.S. Social Security Number (SSN).

The core of Form 1040-SS is the calculation of your net earnings from self-employment. To complete this, you must first determine your gross income from your business or profession. From this gross income, you subtract the ordinary and necessary expenses incurred in carrying out your trade. You may need to reference information from Schedule C or Schedule F to properly calculate these figures.

Beyond reporting self-employment income, Form 1040-SS is used for claiming the Child Tax Credit (CTC) and the Credit for Other Dependents (ODC). To claim these credits, you must provide specific information for each qualifying child or dependent. This includes their full name, SSN, and their relationship to you.

Filing Your Completed Form

The standard deadline for filing Form 1040-SS is April 15th of the year following the tax year you are reporting. If this date falls on a weekend or a legal holiday, the deadline is automatically extended to the next business day. Meeting this deadline is necessary to avoid potential penalties and interest on any tax owed.

For those who need more time, an automatic six-month extension can be requested by filing Form 4868 by the original April 15th due date. This extends your filing deadline to October 15th. This is an extension to file, not an extension to pay. Any tax you estimate you will owe must still be paid by the original April deadline to avoid penalties.

The completed paper form must be mailed to the address provided in the official IRS instructions. The correct mailing address depends on whether you are enclosing a payment with your return. If you owe taxes, payment can be made by check or money order enclosed with your return or through electronic payment options on the IRS website. If you are due a refund, you can expect to receive it within a few weeks, though processing times can vary.