Schedule C and Turbo Tax Deluxe

[axtell]

I am a long-time user of Turbo Tax Deluxe.  During 2024, my daughter worked as an independent contractor for her old employer and received a 1099-NEC instead of a W2.  She has accumulated expenses such as travel and office supplies in order to do her job from home.  I can find a partially filled Schedule C in the forms section, but am I to fill in the blanks rather than use the "EasyStep" interview process?  Is there no help for determining whether she is a Section 199A business or eligible for the QBI passthrough?  Should I be using a different version of Turbo Tax?  Thank you for your answers.

[LeticiaF1]

As you complete the return and enter your the information about your business and your income and expenses, TurboTax will calculate if you qualify for the QBI deduction and how much. ‌It'll only ask for additional information if needed.  

Regarding what TurboTax version you need, you can check the link below to see what version is best for your daughter's situation:

Compare TurboTax Online Products

What is the Qualified Business Income (QBI) deduction?

[VolvoGirl]

If you are using the Desktop program which it sounds like if you have the Forms mode.  Then you can  use any version.  All the Desktop programs  have all the  same forms,  you just get more  help in the higher versions.  If you are using the Online web version you can enter self employment income into Deluxe but if you have  any expenses you need to upgrade to Premium.  

Yes if she qualifies for the QBI Turbo Tax will automatically give it to her.  

[axtell]

Thank you for your answer. I am using the desktop version of Deluxe.  I guess next year I will have to upgrade to Premium if it will simplify the entering of business expenses.  I see no way to do that using Deluxe except to enter into the forms manually.  

I am having one issue which you may be able to help me with.  On Form 8829, the is something called the Simplified Method Smart Worksheet which helps calculate the deduction for home office space.  I can populate boxes B, C and D, but in order get box G to calculate anything other than zero (the deduction), I need to populate box A.  However, the program won't let me type anything in box A, which makes me think it must be filled in automatically by TurboTax.  Didn't there used to be a way to trace where the info comes from elsewhere in the program?  In this case, box A is Gross Income Limitation.  Thank you

[VolvoGirl]

Premium is only  an Online version.  You have everything in your Desktop Deluxe.  If you want the Desktop program for more  help to enter  expenses you would need to buy the Home & Business program.  

Can you find expenses in Desktop Deluxe here?

Go to Federal Taxes Tab
Wages and Income,
Choose I'll choose what I work on
Then scroll way down to Business Items

Then…..
Business Income and Expenses - Click the Start or Update button

Then click EDIT by the business name and the next screen should be a list of topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses

[axtell]

Thank you VolvoGirl, you have been extremely helpful.  I am having one more issue, if you could help.  My daughter received a 1099-NEC, which for her business, would be 100% of her gross income.  I have entered the 1099-NEC amount when TT asked, however, it is not flowing through to the Simplified Method Smart Worksheet for calculating her home office deduction.  The gross income limitation, box A, is showing only the negative amount of her expenses, implying that her gross income is zero and not eligible for the deduction.  How can I get her income to flow through to box A?  Also, I seem to have created several Schedule C due to my various attempts.  This may be part of the problem.  Is it okay to delete these extra schedules without messing up the rest of the return?  Again, thank you very much for your help.

[DawnC]

Yes, delete those extra Schedule Cs.   You need to go into Forms mode to get your Home Office Deduction.   Go to Form 8829.  Scroll down to the section titled Line 8 Calculation Smart Worksheet.  On Line B, enter 100 or the percentage of time she used that office for that business.   The deduction should calculate after your enter Line B.   

[axtell]

Thank you DawnC.  I originally tried going directly to Form 8829, however, Box A does not allow me to enter her gross income.  I assume it is linked to another form.  I can enter all the other boxes, however, without Box A indicating positive income, the deduction will always be zero.

[AnnetteB6]

On the Simplified Method Smart Worksheet, be sure that the box is checked stating that you are using the simplified method for 2024.  Checking that box should populate the rest of that section automatically.

For good measure, you should go through the input screens instead of entering information directly in Forms Mode.  

Go to Federal > Wages and Income > Business Items > Business Income and Expenses (Sch C) and click Update, then Edit the business name you are working through.  You will see messages asking you to upgrade, but it is not required.  Keep clicking that you do not want to upgrade and you will be allowed to continue.  

@axtell 

[axtell]

Thank you all for your help.  I finally got it.   I was able to use the EasyStep to enter all the data, but I had to manually enter one box on Form 8829 to get it to flow through correctly to the 1040.  I appreciate it!

[wildwoodgirl1973]

I see you had several issues that were resolved but I could use some help!! Sorry if I missed these answers in your thread. I, too, have 1099NEC only income, as I did for last year as well. I am not getting my QBID calculated at all (which I should more than qualify for) nor am I getting ANY questions, or pages, to inquire about my home office expense, car/travel expense, or any expense!   I even *upgraded* to the Business version today as TT suggested because I had the 1099NEC,,,, thing is, I did it last year with TT  Deluxe, same as I was trying to use this year! I am not a stupid person, and I am also not a patient person 🙂  ANY help would be appreciated!

[AnnetteB6]

If you are self-employed with all of your income reported on Form 1099-NEC, then you should be filing a Schedule C Business Income and Expenses to report your income and associated business expense.  If you used TurboTax for 2023, then your Schedule C should have transferred into your 2024 return so that you would not need to start from scratch again.  

Use the following TurboTax help article as a guide to go to the Schedule C section of your return.  If you see a business already listed there, then Edit it and enter your income and expenses.  

Where do I enter Schedule C?
 

@wildwoodgirl1973