Do I have to pay 89 for self employed version if I only need to report a small (less than 1000) profit from home based business
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jmascarich
New Member

Do I have to pay 89 for self employed version if I only need to report a small (less than 1000) profit from home based business

 
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MichaelDC
New Member

Do I have to pay 89 for self employed version if I only need to report a small (less than 1000) profit from home based business

If you have only income from self-employment and no expenses, there is no need to upgrade from Deluxe. If you do have expenses, however, that will trigger an upgrade to the TurboTax Self-Employed edition.

Expenses, however, could reduce your total income and overall tax bill. Including SE tax (social security/medicare tax) of 15% and a 15% tax rate, $280 of expenses would save you around $84 in taxes. At 25% tax bracket, it would mean a $112 saving, and so on.

Here are some more expenses that may help boost that difference:

http://quickbooks.intuit.com/self-employed-center/complete-list-of-self-employed-expenses-and-tax-de...

Since you have a home-based business, you may qualify to deduct home office expenses.
The home office deduction lets you deduct things like rent, mortgage interest, insurance, utilities, repairs, and depreciation for the portion of your home used for business. It's available to homeowners and renters alike.

You may be able to claim the home office deduction if your office is used regularly and exclusively for your business and is your principal place of business. In addition, if you're working at home for an employer, your home office must be for the convenience of your employer – not just you.

This means if your employer lets you telecommute as an option, you can't take the deduction. However, if your employer doesn't have their own office or workplace, forcing you to work from home, you may be able to claim the deduction.

When you enter your home office information in TurboTax, we'll determine if you can claim the deduction and how much the deduction is worth.

 




jmascarich
New Member

Do I have to pay 89 for self employed version if I only need to report a small (less than 1000) profit from home based business

Makes the decision to move over to Credit Karma that much easier. Been using turbo tax for 10 plus years but no more. Wake up Intuit.
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