It is considered self-employment income and should be reported on Schedule C as TurboTax is doing. You are responsible for the self-employment tax on self-employment income as you are both the employee and employer. However, you are entitled to deduct all of your business-related expenses in connection with the income, including automobile mileage. Your expenses will reduce the taxable amount of income you have to pay tax on. If you are still working delivering papers, you can make estimated tax payments to the IRS (or increase your retirement withholding) during the year so that you are not stuck with a tax bill come tax filing time.
Where do I enter my business expenses? There is a link at the bottom of this article that lists the types of deductions you can take.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
