different tax fields in 1 year with dependents!

Forum|Forum|3 years ago
October 26, 2022
3 replies
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I have had a job few a few years and have filed more own taxes because I feel the W2 is simple, but this year I became a real estate agent and have expenses that I have to write off and have been paying taxes with dependents to write off, but how does the income from Real estate affect the other taxes?

drc845443

Level 6

Hello there!

Congratulations on your new business as a real estate agent.

From the information you have provided, I have assumed you are now self-employed as a real estate agent (i.e. you are not working for someone else who will give you a W2 at the end of the year). You may receive a Form 1099-NEC if you are an independent contractor.

As a self-employed person, you will need to report your income and expenses from the business separately from other income such as W2 income. You will need to keep a record of your income and expenses of the business. The net income or loss from your business will be reported on Schedule C - TurboTax will prepare the Schedule C in the background as you enter your income and expenses.

A key difference is that, depending on your net income, you may have to pay self-employment taxes to cover your social security and Medicare contributions. In the link below, you will find some useful tips for real estate agents:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/tax-tips-for-real-estate-agents-and-brokers/L6JBCu3uH

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Faith C

Level 5

For tax planning purpose, you may want to use our tax calculator which will give you a good idea about your 2022 tax. If you found you may owe IRS tax because of your real estate income and not having enough withholding on your tax, you will want to consider paying some estimated tax by January 15, 2023 to avoid underpayment penalty. Best luck to your real estate business. We hope your business will go amazing! Again, please feel free to contact us if you have any further questions.

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SuziM

Level 10

Thanks for your participation in our Ask the Expert event regarding "How does the Child Tax Credit and Dependent Care Credit impact this year's tax return for you?"! We’d love to get your input on the event and your TurboTax experience: Click here to leave a video testimonial.