Where is Turbotax is Sch C input?

[Labamigo]

I worked for company X from January through the end of March, 2019, then was an independent contractor for them from April through the end of September.   So I got a W-2 and a 1099 from them last year. 

I used Turbotax and it prints out a Sch C that has only my 1099 income and no business expenses because I never came across anything in turbo tax that gave me the opportunity to input business expenses. 

How and where do I input that information? 

[DavidS127]

Click the "magnifying glass Search" icon on the top row, enter "schedule c" in the search window and press return or enter, and then click on the "Jump to schedule c" link to begin entry of you self-employed income.  Depending on which TurboTax version you are using, an upgrade may be required to enter your business expenses.

Note that if you are doing the same work for the company as a independent contractor that you were doing as an employee, you will not be eligible for the Qualified Business Income (QBI) deduction for your Schedule C income.  If you are doing different work, you are eligible for the QBI deduction.

[VolvoGirl]

You can enter 1099Misc Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.

How to enter self employment expenses

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-self-employment-busine...

And here's some general self employment info....

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. 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 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.

FOR 2019

Here's a blank schedule C to see how it works

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

For 2019 Schedule C Net Profit or Loss goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

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.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

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

[Labamigo]

thank you and yes I was doing the same work and I didn't even know what QBI was.  Is that a big thing?  

[DavidS127]

Those eligible for the QBI deduction can subtract 20% of the "net income" of the business from their taxable income.  So, it can be an attractive deduction.

The IRS imposed the "can switch from W-2 to 1099 for same work" rule to prevent bona fide employees from declaring themselves independent contractors solely to take advantage of the 20% reduction in income.  See the section of the IRS Instructions for Form 8995 at this link for the specifics about the "W-2 ....  That exclusion is in place for three years, but you can rebut it if you provide records proving your status as an independent contractor.