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krlemon
New Member

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

 
6 Replies
MichaelL1
Level 15

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

There is no minimum amount. 

If you are self-employed and incur business expenses related to running the business for a profit, they are deductible.

This is IRS Code Section 162.  Ordinary and necessary business expense. 

It is a tax deduction for the business, not a reimbursement. 

krlemon
New Member

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

Is there a minimum income amount to be able to file for deductions? I have a new business so I on my received  $455 income with $1,000 in expenses.
MichaelL1
Level 15

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

No, there is no minimum.  Your income many times in a new business is smaller than the expenses.  You will need to use the on-line TurboTax Self-Employed Product or the downloadable product titled TurboTax Home & Business to claim this income and expenses.  See this link for more detail on product selection:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4155045-need-to-figure-out-which-turbo-tax-to-buy?jump_to=answer_6...>
VolvoGirl
Level 15

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

There is also The Turbo Tax Freedom website which is free for federal and state.  And has more forms than the Federal Free Edition, like the full 1040 return and Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Tax Freedom website  you just need to meet one of these 3 things
AGI $33,000 or less
Active duty military with AGI of $66,000 or less
OR qualify for EIC (earned income credit.)
Those amounts are from 2016, I don't know the 2017 amounts yet.

In order to use the Tax Freedom Edition, you have to start it at a special website:
<a rel="nofollow" target="_blank" href="http://turbotax.intuit.com/taxfreedom/">http://turbotax.intuit.com/taxfreedom/</a>

When you get to Tax Freedom use the link to "I Qualify, Start Now" at the bottom instead of the sign in link. And you have to create a new account, if you use the same account info it will take you back to Turbo Tax.

How to switch to the Tax Freedom edition
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition">https://ttlc....>
VolvoGirl
Level 15

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

For the future, There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....
http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

How to report your self employment income
https://ttlc.intuit.com/replies/4801198
VolvoGirl
Level 15

I am self employed and paid $1,000 in supplies for my business. Is this enough for me to be reimbursed by taxes? I was told I wouldn't qualify without hitting a minimum?

When you are done with your 2017 return you will need to prepare estimates for 2018.

The first year you don't need to pay estimates as long as you pay in (by withholding) as much as your tax was last year.  But if you will have a big income you should send in estimates so you don't owe too much next April on your tax return.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
 
- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year you start with your current return, but be careful not to change anything in your real return or you will overwrite your return.
You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button
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