Does free turbotax allow me to file my side business earnings?

[Alen]

I filed my taxes for the first time this year and it as just taxes for my regular job, so a W2. I used the free version of turbotax, clicked w2, entered all the info and got my returns. This year I will be receiving commissions from amazon sales by referring people to products using my affiliate links (affiliate marketing). I understand that I have to file taxes on any money generated through the affiliate programs. 

Does the regular version of turbotax allow me to file taxes on both my W2 and the affiliate marketing profits? If so, would I just click the W2 option once again and enter the affiliate marketing profits as a side business earning? I don't quite remember the layout of the different pages when I filed so I'm not sure if there would be a spot (when filing w2 taxes) that allows me to add extra side business income. 

Any help would be appreciated! Thanks!

[Kat]

Most of the time, "commissions" are considered self-employment income.  You'll likely receive a 1099 (tax document) from Amazon reporting your income.  But you'll need to keep excellent records of this income, as well as any business expenses associated with this income.

Unless something changes with the TurboTax Free Edition, you will not be able to use the Free Edition to file your tax return for 2019.  You'll be required to upgrade to a paid edition.  At a minimum, you'll be required to use the Deluxe Edition, and possibly upgrade to Self Employed Edition.  The TurboTax program (you can always begin with Free Edition) will direct you on preparing your 2019

tax return in early 2020.

You also need to educate yourself on making quarterly estimated tax payments, as income taxes and self-employment taxes on these commissions are expected to be paid throughout the year.  You should review IRS Publication 1040-ES and familiarize yourself with your obligations.  I've linked the publication below.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

[Alen]

Ah alright! That clears up much of the confusion I was having with it all. When you say I need to "keep excellent records of the income", do you just mean I need to make sure I have that 1099 saved and stored somewhere safe? 

I will also review the IRS Publication 1040-ES to make sure I understand the quarterly tax payments. Thank you very much for that!

[Kat · Accepted solution]

You are so welcome!  The "excellent" records part means that you should keep a record of each paycheck you receive.  This would include the date and amount of your payment.  It doesn't have to be anything super fancy; a ledger sheet, or even a plain piece of paper is fine.  Just record your income as it comes in so that you can compare your total to the 1099 that you'll receive.  And you may NOT receive a 1099, which makes your record-keeping your official document.

Additionally, keep a record and receipts you have for costs associated with this business.  If the IRS should ever want to take a look at your records, you'll have them all together and would be able to produce them easily.

And yes, ALWAYS keep any tax documents (such as your W-2 or 1099s) in a safe place.  

One other suggestion:  Each and every year, you should print or save a copy of your TurboTax PDF file as well as your tax data file.  Save it to your computer, and also to a separate device such as a flash drive, external hard drive, etc.  That way, you'll always have a copy at your fingertips without having to pay TurboTax to access a copy.  I'm linking you to two TurboTax FAQs that instruct you on saving these files.

Best of luck in your new venture!

https://ttlc.intuit.com/questions/1912544-how-do-i-save-my-2018-turbotax-online-return-as-a-pdf

https://ttlc.intuit.com/questions/1901360-save-a-backup-copy-of-your-tax-file