topic Re: Deductions ? in Get your taxes done using TurboTax

Deductions ?

sugarbear9876543 — Sun, 12 Jul 2020 20:25:39 GMT

Hello.

A section I am filling out for self employed people asks Enter your legal and professional expenses Tax preparation fees .

Can I deduct the cost of the fees from Turbo tax online when I file under self employed ?

Re: Deductions ?

BillM223 — Sun, 12 Jul 2020 20:48:54 GMT

You can deduct on Schedule C only that portion of your TurboTax fees that apply to your business.

That is, you have to allocate a percentage of the cost of your return to Schedule C and not to the rest of the return. This number if arbitrary, but you have to justify it (no one else can do it for you). You may expense that amount which you think covers the expense of Schedule C and SE, but not the whole return.

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 01:24:24 GMT

Hi .

I really don't understand . The Turbotax self employed version of is asking me to pay 120.00 or so. Can I deduct that ?

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 02:47:14 GMT

Please advise .

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 16:15:02 GMT

Hi .

I really don't understand . The Turbotax self employed version of is asking me to pay 120.00 or so. Can I deduct that ?

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 16:20:38 GMT

Please advise.

Re: Deductions ?

BillM223 — Mon, 13 Jul 2020 16:29:16 GMT

You have to determine what percentage of the $120.00 can be allocated to your Schedule C and SE. We cannot do that for you.

Then you multiply that percentage times the $120.00 and deduct that amount in Schedule C.

If you are looking for a definitive number from us, we cannot give that to you. You must decide the ratio, based on your return - how much of your return's work was in entering your personal information versus your business information? We have no way to know that.

Re: Deductions ?

HFC3 — Mon, 13 Jul 2020 16:39:55 GMT

Darn - clicked wrong buttons - question was where do you enter Schedule C deductions. I didn't see them went I went through the first couple of times.

Re: Deductions ?

BillM223 — Mon, 13 Jul 2020 16:35:52 GMT

Are you using the Online product called Self-Employed?

"A section I am filling out for self employed people asks" - you're telling me that this is not in the business section?

Have you entered any business information at all?

Re: Deductions ?

VolvoGirl — Mon, 13 Jul 2020 16:39:17 GMT

@HFC3 In the Online web versions......You can only enter the 1099Misc and self employment income into Deluxe or Premier. If you have any expenses you have to upgrade to the Self Employed version.
https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-self-employment-business-expenses-like-home-office-vehicle-mileage-and-supplies/00/27109

If you buy the Desktop CD/Download program then all versions have all the same forms so you can enter business income & expenses into any version.

Re: Deductions ?

HFC3 — Mon, 13 Jul 2020 16:43:55 GMT

For some reason, the first couple of times I went through the Schedule C deduction details werent available below the types of non-W2 income. This time, though, after clearing CACHE, they're visible.

On that note, though, later on the platform there's an error where it asks you when you expect to pay taxes owed. It stipulates the due date is April 15, 2020 - when, in fact, it's July 15th. On the previous attempts (which have been cleared), I entered April 15th to avoid TT from assessing a late fee but this should be corrected ASAP to prevent confusion.

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 22:01:46 GMT

As I am trying to fill this out it states ,I am now being told I have a Underpayment Penalties. What the heck .

How is that ? How do i change that ?

Please advise.

Re: Deductions ?

VolvoGirl — Mon, 13 Jul 2020 22:03:20 GMT

If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.

You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form. If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column. Type 2210 in the search box and open the 2210 form. Check box C to let the IRS calculate it.

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 22:52:15 GMT

This filling software is really horrible . It changed it to NOT underpayment penalty , which made me very happy. Then it said I did a great job and everything was done ! Then as I about to wrap it up it said I owe state tax , WTH ?!? Im in Florida , there is no state tax . I don't understand .

Please advise .

Re: Deductions ?

VolvoGirl — Mon, 13 Jul 2020 22:54:34 GMT

How to delete the state,

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-delete-my-state-return-in-turbotax-online/00/25895

Re: Deductions ?

HFC3 — Mon, 13 Jul 2020 22:58:32 GMT

Duh - of course you'd have to pay a penalty if you don't pay or pay late. My point is that April 15th IS NOT THE DEADLINE THIS YEAR. The Deadline is JULY 15th - You're not late until JULY 16th. TT should (3 months have) have updated their platform to reflect this to avoid USER confusion.

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 23:02:04 GMT

I do not want to delete anything why would I ? I was never told to ANYWHERE they can see I live in Florid . I am paying hundreds of dollars to file this . For that cost I shouldn't have to guess about these things . At the end of the filing sequence it does not say if you live in Florida click here. This is really bad service.

So you are telling me to delete something but the service itself did not ?

Please advise.

Re: Deductions ?

nougiecat — Mon, 13 Jul 2020 23:02:28 GMT

Is this the cost to buy the product? If so, then it is deductible. But be aware that this deduction is limited to the amount in excess of 2.5% of adjusted gross, so it is almost impossible to take it unless you use an expensive accountant. I believe use turbotax online for free, but I don't use that so I don't know for sure. If the $120 is tax you owe, then obviously you have to pay it.

Re: Deductions ?

VolvoGirl — Mon, 13 Jul 2020 23:05:14 GMT

@sugarbear9876543 You just have to delete the Florida return since Florida does not have an income tax. It won't affect your federal return. Delete it so you don't end up paying the $50 for a state return you don't need!

Re: Deductions ?

sugarbear9876543 — Mon, 13 Jul 2020 23:05:32 GMT

No the bottom line I just want to end this pay it and close it and go have a drink ! But now it says I owe state tax and its not finished . I live in Florida and there is no state tax !