Internal Revenue Service United States Department of the Treasury
Module 14: Self-Employment Income and the Self-Employment Tax

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Sim 14A: Using Form 1099-INT to Complete Schedule C-EZ, Schedule SE, and Form 1040
Simulation Info: Rita Bentley; Marital status: Single; Background: You are a high school student and live with your mother. You have your own business and will claim self-employment income.

You are 17 years old and single. You are a U.S. citizen. You live in the United States with your mother, who pays for all of the costs of maintaining your home.

You are a full-time high school student. After school and on weekends, you take care of pets while their owners are traveling. You are not an employee. You are correctly classified as an independent contractor.

It's the last day of the year. You earned $1,700.00 by walking dogs as well as by feeding various pets, including dogs, cats, and birds.

You have receipts for all of the business expenses.

  • Supplies, including dog treats, plastic bags, collars, and leashes: $40.00
  • Notebook to track income and expenses: $5.00

You deposit your earnings in a savings account. You will use the money to pay for your college education. During the year you earned $54.00 of interest income on your savings. Your mother provided all of your support.

To review your personal information, click My Profile below.

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