Define "qualified business" item 1 sched c. This "...
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pemaro
Level 2

Define "qualified business" item 1 sched c. This "help" is useless so far.

this help is not helpful because it doesn't answer questions.
5 Replies
Kat
Level 15
Level 15

Define "qualified business" item 1 sched c. This "help" is useless so far.

Are you asking about qualified business expenses?  The IRS defines a qualifying business expense as both "ordinary and necessary."  The TurboTax FAQ I'm linking below has valuable information to help you determine what expenses are "qualified" for your business.

 

What self-employed expenses can I deduct? 

 

Additionally, you should review the info in IRS Publication 535 that explains in detail what can be deducted (and how to deduct these expenses) as a self-employed individual.  I'm linking that publication below.

 

 https://www.irs.gov/pub/irs-pdf/p535.pdf

 

*Please click the thumbs-up icon if this response was helpful.
**Please click "Mark As Best Answer" if your question has been resolved. Thank you.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
Critter-3
Level 15

Define "qualified business" item 1 sched c. This "help" is useless so far.

If you are new to being self employed, are not incorporated or in a partnership  and  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 

 

Publication 463 Travel, Gift, and Car Expenses

Https://www.irs.gov/pub/irs-pdf/p463.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

 

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

                                              

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed


Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next 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 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

 

pemaro
Level 2

Define "qualified business" item 1 sched c. This "help" is useless so far.

Thanks, this is useful info; I had figured it out using IRS help prior to filing deadline.  As I understand it, a qualified business is the rule, with exceptions less common.  They ought to put a link to the definition on the form.  Step by step is a problem (past years) because at least sometimes you can't get to forms from the interview.  They are no longer accessible, so you can't use interview as a help.  This is a problem with TTax.

pemaro
Level 2

Define "qualified business" item 1 sched c. This "help" is useless so far.

I was asking about line 1 sched C where check is requested for that definition, which is not given and was not obvious but which I was able to ferret out.  Kat's answers are helpful.  I suggest below a change to ttax that permits using the interview as a helper and not as an exclusive option to forms.

Kat
Level 15
Level 15

Define "qualified business" item 1 sched c. This "help" is useless so far.

@pemaro In the online TurboTax platform (web-based), you cannot access the forms directly for data entry.  You can, however, access your forms for viewing before filing.  That option is available by pre-paying for your TurboTax program before filing.

 

You may be interested in the Desktop platform of TurboTax (CD/Download), which allows Forms Mode throughout.  A user can opt to go either route:  interview or direct input.  TurboTax still highly recommends using the interview, as some users are inept at direct entry, as you may imagine.  I'm sharing a little more info on the  Forms Mode, linked below.

 

What is Forms Mode? 

 

 

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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