Solved: As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?
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New Member

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

Do I need to pay estimated taxes? How much and when? Is there software that I can start using to make this super easy for me? When it's tax time again in April of 2018, half my year will be as a regular employee but the other half will be as a "self-employed" contractor (with an LLC) -- will Turbo Tax for Home and Business be sufficient?

Thanks!

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Level 15

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

You can use any of the downloaded versions ... upgrading to the H & B version is an option not a requirement.

 

If you are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

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

Publication 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 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf



What are estimated taxes?

https://ttlc.intuit.com/replies/3301588

Do  I need to make estimated tax payments to the IRS?

https://ttlc.intuit.com/replies/3301891
  How do I make estimated tax payments?

https://ttlc.intuit.com/replies/3301258

 

Can TurboTax calculate next year's federal estimated taxes?

https://ttlc.intuit.com/replies/4242911

 

Can TurboTax calculate the estimated payments for next year's state taxes?

https://ttlc.intuit.com/replies/3301735

 


View solution in original post

6 Replies
Highlighted
Level 15

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

You can use any of the downloaded versions ... upgrading to the H & B version is an option not a requirement.

 

If you are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

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

Publication 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 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf



What are estimated taxes?

https://ttlc.intuit.com/replies/3301588

Do  I need to make estimated tax payments to the IRS?

https://ttlc.intuit.com/replies/3301891
  How do I make estimated tax payments?

https://ttlc.intuit.com/replies/3301258

 

Can TurboTax calculate next year's federal estimated taxes?

https://ttlc.intuit.com/replies/4242911

 

Can TurboTax calculate the estimated payments for next year's state taxes?

https://ttlc.intuit.com/replies/3301735

 


View solution in original post

Highlighted
Level 15

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

The answer above is based on the LLC being a single member LLC and not a corporation ... if you made the S-corp election post back for alternative instructions.
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New Member

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

Fantastic all of you--thank you so much!!  --JG
Highlighted
New Member

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

One more thing (to borrow from Columbo) -- How do I take measure of my State estimated taxes? I can't seem to get TurboTax to get me into that zone like it did for the Federal. Thanks again, in advance!!
Highlighted
Level 15

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

Yes, at the end of your state return, we’ll ask if you want to make estimated tax payments and help you calculate the amount.
Highlighted
New Member

As of 6/1/2017 I ended full-time employment and began working as an independent contractor (my LLC). What software do I need to use for tax accountability and compliance?

Again--THANK YOU!! 🙂
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