TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

Self employed deductions with deluxe version

Forum|Forum|5 years ago
April 7, 2021
3 replies
12 views

Is it worth it to upgrade to the self employed version of TurboTax if much husband worked only 2 months in that capacity? He has some deductions he could take but not a lot.

Alumni - Expert

Alumni - Expert

Yes. If your husband was self-employed at any time during the year, you need to file a Schedule C. The Schedule C is to report both your self-employment income, as well as your expenses.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Level 2

But TurboTax is saying that only if I have expenses of at least $850 will it pay for itself. It’s giving it as an option not a requirement. He only has $405 in mileage. I don’t know if it’s worth it to upgrade. The self employment tax is $359. How much will that expense reduce that tax?

Level 15

I am unsure which number you are asking about. Please clarify.

Self-employment income is assessed a self-employment tax. IRS Form 1040 Schedule SE lists tax rates of 12.4% (line 10) and 2.9% (line 11) = 15.3%.

$850 x 15.3% = $130

$405 x 15.3% = $62

Self-employment income is subject to self-employment tax, then to your individual income tax rate.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"