Hello, this is the first year I'm only 1099 income and I'm really nervous about getting my taxes right.
I signed up for the Quickbooks Self Employed Live Tax Bundle and have my expenses separated into personal and business. I also organized the assets I want to claim. However, the part I'm really nervous about is my SEP IRA contribution.
I opened a new SEP IRA earlier this year but haven't contributed yet. I'm ready to make my deposit now, but want to understand how this all works. When I make my contribution, will Quickbooks update and reflect the deduction? Meaning will the contribution deduction reflect as a reduction on my owed quarterlies? Or will I have to file for a refund next year?
The second question I have is about the QBI deduction. I don't see that anywhere in Quickbooks, but I do qualify for that deduction. Will that show up in TurboTax? Will that show up as a deduction on my owed quarterlies or will I have to file for a refund next year?
Third question is about any possible refund. If I pay my quarterlies as Quickbooks calculates them, then do I still do a final filing next year? I'm used to W-2 way of paying which is just once in January/February then get my refund around March. Wouldn't Quickbooks calculate my quarterlies such that there is no refund in the end? Why over or under pay?
The last question is for my home office. Quickbooks only shows the standard deduction by square feet, but it also lists the real expenses next to it. Using itemized will be much bigger deduction for me, but is that something TurboTax will figure out for me? Using the itemized instead of the standard I mean.
Thanks in advance! Lots of questions. I actually subscribed to the Quickbooks SE Live Tax Bundle, but the link to talk to a CPA is broken - I'm talking to help support about that hoping they can get it working soon 😕
