Do we attach images of business expenses in TurboTax? If so, how and where do we do this?

[lovelacen]

We started a business in 2021 and have a number of eligible expenses. How

[ColeenD3]

No, you do not attach images. Keep track of each category of yearly expenses and enter the totals on Schedule C (or whichever form you use). Keep the receipts in your own records.

If you're self-employed, it's likely you need to fill out an IRS Schedule C to report how much money you made or lost in your business.

We'll automatically complete Schedule C for you when you add your self-employment income in TurboTax (usually Form 1099-NEC or 1099-MISC). It gets attached to your Form 1040, which we'll also handle for you.

If you need Schedule C to report a 1099-NEC or 1099-MISC, search for 1099-NEC or 1099-misc and select the Jump to link. We'll ask questions to find out if your 1099 income needs to go on Schedule C.

[VolvoGirl]

You don't have to enter each expense.  You can just enter the total for each category.  Keep the details as backup if the IRS asks to see them.  Here's Schedule C to see the expense lines.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf 

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You will need to keep good records.  You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.

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 or 1099NEC 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.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  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

I use Quicken to enter my expenses.  Then print a category report and just enter the totals.