Will I have to pay taxes on my total earnings from tiktok shop or can I show my dropshipping deductions?

Forum|Forum|1 year ago
July 7, 2024
1 reply
4 views

I only have about 100 in profit but I’m worried I’ll have to pay more.

TurboTax Free Edition Online

rjs

Level 15

Selling on TikTok Shop is a business. What you pay for dropshipping is a business expense. You pay tax on your net business income, which is your total income minus expenses.

But the tag below your question says that you are using TurboTax Free Edition Online. You cannot deduct business expenses in Free Edition. To report your business income and expenses you have to upgrade to Premium Online, or use any version of the CD/Download TurboTax software.

xmasbaby0

Level 15

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

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