Small Business

Self-employment taxes refer to the social security tax and Medicare taxes that must be paid on the "net" earnings of an unincorporated business by the business owner (net earnings is after deducting most business expenses). I It is paid with the owner's individual income tax return- form 1040.
Other non-business deductions cannot eliminate this tax as it is a separate tax calculation.
Explanation: When you work for someone as an employee, social security and Medicare taxes are taken out of your pay check. When you work for someone as an employee, the employer must also pay his share of social security tax and Medicare taxes.
Self-employment tax represents both amounts - the employer and employee portion of the tax.

For 2013, 92.35% of your net earnings ( after your business expenses) from self-employment income are subject to a rate of 15.3% on the first $113,700.

In the past, Forms W-2 and W-3 had to be filed using the Red forms but currently the IRS will accept IRS approved scan able Non red forms.
For the current year, paper copies to be filed with the IRS for Forms 1099 Copies A and 1096 must be RED copies.

The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 56.5 cents per mile for business miles driven.

You should maintain a log or diary of your auto expenses.
If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes.
If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.

You are required to pay self-employment tax on self-employment income after you retire and receive Social Security>

Rent from Real estate (except RE dealers), Dividends and Interest except dealers in securities) and Capital gains (except traders in securities) are not considered income subject to SE tax.