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jpeck243
New Member

When I do taxes for my small business do I also have to claim on my personal taxes? I dont want to pay in twice by claiming it on my business taxes and my personal taxes?

Its a sole proprietorship and I have my own ein number for my business. I just don't understand if i have to file them separately or together. I don't want to have to pay in twice once on my business taxes and also on my personal taxes because I have no other source of income besides my business. 

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3 Replies

When I do taxes for my small business do I also have to claim on my personal taxes? I dont want to pay in twice by claiming it on my business taxes and my personal taxes?

Depends what kind of business return you need to file.  Are you self employed?  If you are self employed/sole proprietor/freelance/independent contractor etc.  you fill out schedule C in your personal 1040 return.

If you need to file a separate business return like a 1065 Partnership or LLC or a 1120S or C corp, You need Turbo Tax Business.   TT Business is for 1120 Corporation, 1120S Corp, 1065 Partnership or 1041 Estate/Trust returns and will not do your personal 1040 return.   It  is a separate program from Home & Business (or Personal & Small Business).  Home & Business is for personal returns that include a schedule C for self employment or sole proprietor. A single owner LLC would be reported on Schedule C unless the LLC elected to be treated as an S corp or C corp.

You will get a schedule K-1 (or a W2) from the business return to manually enter into your personal 1040 return.

Turbo Tax Business  is not available to do online or on a Mac.  You can buy the Window's version here.  And you can have both TT Business and TT Home & Business (or any personal version) installed on  your computer at the same time.
https://turbotax.intuit.com/small-business-taxes

When I do taxes for my small business do I also have to claim on my personal taxes? I dont want to pay in twice by claiming it on my business taxes and my personal taxes?

Oh you added on to your question that you are sole proprietor.  Yes you need to add schedule C to your personal return.

If you have Self Employment income you have to file a schedule C in your personal 1040 return. You may get a 1099Misc for some of your income but you need  report all your income.  So you need to keep your own good records.

Fill out Schedule C here
The Business Tab - Continue
I'll choose what I work on
Business Income and Expenses
Then….
Profit or Loss from Business, click Start or Update

You use your own name 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 you put in your income and expenses  if your net profit is $400 or more you will pay 15.3%  Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

After it asks if you received any 1099Misc 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.

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

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 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.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return....
http://quickbooks.intuit.com/self-employed

When I do taxes for my small business do I also have to claim on my personal taxes? I dont want to pay in twice by claiming it on my business taxes and my personal taxes?

If you buy the Desktop CD or Download Software any version will handle it but you will get more help in Home & Business.

For the Online versions...........You can use Deluxe or Premier if you have very limited expenses such as supplies less than $100.   If you have more complex situations and/or higher expense amounts you will have to upgrade to the Home and Business product to fill out the full schedule C.  I can tell you how to enter it the lower versions.

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