If you file Schedule C for self employment income you need to file a Net Profit of $400 or more. If you get any 1099NEC forms you have to file a return.
Or do you need to file a separate business return like a 1120 or 1065?
If there was no net profits, as the buisness lost money in its first year, I would need to file?
Yes you should still file especially if you have other income. You can show a loss on your tax return and it will be deducted from your other income giving you less taxable income.
I hear! What plan should I pick for Turbo Tax?
I'm assuming that you are self employed/independent contractor/freelance, etc. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or use any of the Desktop CD/Download programs. How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653
To report your self employment income you will fill out schedule C in your personal 1040 tax return. Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf
Ok! And what about state filing, Is that easy to file?
Yes, the information from your Federal return will flow to the state return.
Hello,
the reason I’m asking is, once I file the federal taxes, there is a additional fee for filing state taxes that turbo tax charges, so can I just do the federal with turbo tax and I’ll be able to do the state by myself?
let me know
@mordinir11-gmail If you do not want to use TurboTax to prepare your state return, you can get the state forms from your state's tax website and prepare them by hand. You will need a copy of your federal return for some information that will be asked for on the state forms.
Is it easy to file state returns, once you have federal returns.
@mordinir11-gmail We cannot answer whether it will be "easy" for you. We have no idea how complex your return is, nor do we know your level of comfort or expertise in preparing a tax return. If you use the TurboTax software, the information flows from the the federal return to the state return, and makes state preparation relatively easy. We do not know what all you will have to enter on a state return if you just prepare it on the paper forms by hand. You asked if there is a way to avoid paying to use TT to prepare the state return. There is a way----but it might not be worth the $49 you save. That is up to you.
I am not using the software, I am paying turbo tax to do it for me.
Your question was posted from the Free Edition so no one can tell what software program you have been using. We do not know what version of online TurboTax you used or if you used the CD/download. If you used the CD/download then the software included a state program and you have an extra fee of $25 to e-file the state return. You can avoid that fee if you just print and mail the state instead of e-filing it.
If you used online TurboTax then the state program is an additional $49, unless you used TurboTax Live or Full Service ----then the state is $54.