The wife and I started a couple businesses, which product would be best? We started 2 Sole proprietors and an LLC.

[jmcgee69]

So the wife and I started a couple of businesses.  She started a crafting business (Sole), I started an automotive repair (LLC), and a laser cutting/engraving business (Sole).  I am looking to see which product would be the best option to handle this scenario, home and business or the small business, or the LiveCPA Version.  I like having desktop software so can I use the Small business version and does that have the live CPA?

[Critter-3]

Unless you incorporated the LLC you have 3 sole proprietorships so you only need a personal tax program.

If you use the ONLINE version you will have to use the Self Employed version with or without the LIVE option. 

https://turbotax.intuit.com/personal-taxes/online/

If you use the downloaded version you can use any of them although the Home & Business will provide the most assistance if you need it ... you can start with the Deluxe and upgrade if you feel the need for more help.  The LIVE help is not available with any of the downloaded versions. 

https://turbotax.intuit.com/personal-taxes/cd-download/

If you qualify  AND   if you wait until mid January  THEN you can use one of  the IRS FREE FILE options to file a fed & state return for free ... but you must be patient.    https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

IRS Free File: Closed until January 2021

IRS Free File is closed for the 2020 tax season. Check back in January for Filing Season 2021 opening details.

For Filing Season 2021, you must make $72,000 or below to use IRS Free File partner offers.

[Critter-3]

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

[jmcgee69]

Thank you for your reply,  This gives me some reading to do.  I am sure I will have future questions which is why I like the idea of the CPA version but don't like relying on the internet to have to do what I need to do.

Thanks for your help

[Critter-3]

I agree ... if you don't feel comfortable then for the first year you may want to seek local professional assistance so you can get educated. 

[Carl]

This is an addendum to what has already been posted in this thread.

Unless the law changes, your 2020 tax return is due Apr 15, 2021.

1- Since this will be your first year dealing with business income/expenses, and if you want to tackle this yourself, do not wait until the last minute. Otherwise, it's perfectly possible (and highly likely) that the fines, penalties, backtaxes and interest could bankrupt all of your businesses before they even get off the ground.

2. While the download/CD version of TurboTax 2020 is available now, the program is not complete, and it is very doubtful it will be complete before Jan 31st, 2021. So filing early has a very high probability of coming back to bite you. It is my recommendation that you do not e-file until "AFTER" March 15th and "BEFORE" April 1st, 2021. This will allow time for critical updates to the program, as well as tax law changes to be incorporated into the program. If you e-file early and then learn later you need to change something in your already e-filed tax return, it could be a real PITA to deal with and you will regret having filed early. Amended tax returns can take weeks or months to process.

3. Being that you're dealing with three businesses for your very first time all in the same tax year, I would recommend you pay a CPA for at least that first year, to complete your taxes. This is especially true if your state also taxes personal income. Just make sure the CPA is clear that you want a printout of "EVERYTHING" that includes all calculation forms and worksheets - and not just your forms required for filing. You will need these printouts if you decide to tackle this yourself, in your second year. (weather you use TurboTax or not.)