topic Hi , I’d like information on how I would do my taxes if I worked for postmates or if it’s beneficial? Just info please. Thank you in Get your taxes done using TurboTax

Hi , I’d like information on how I would do my taxes if I worked for postmates or if it’s beneficial? Just info please. Thank you

isabelcabral99 — Thu, 20 Aug 2020 20:09:34 GMT

Re: Hi , I’d like information on how I would do my taxes if I worked for postmates or if it’s beneficial? Just info please. Thank you

Critter-3 — Thu, 20 Aug 2020 20:47:05 GMT

Beneficial or not ALL income MUST be reported on an income tax return ...

If you are new to being self employed, are not incorporated or in a partnership and are acting as your own bookkeeper and tax preparer you need to get educated ....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57. The SE tax is in addition to your regular income tax on the net profit.

PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017 SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

Re: Hi , I’d like information on how I would do my taxes if I worked for postmates or if it’s beneficial? Just info please. Thank you

Opus 17 — Thu, 20 Aug 2020 23:28:18 GMT

The short answer is:

If you are self-employed (side gig, independent contractor, etc.) you report all your business income and expenses on Schedule C, an attachment to your tax return. You are expected to keep accurate records of your income and expenses, even if you don't get tax paperwork from your customers or clients. Your gross income minus your expenses equals your taxable income or net profit. That flows to the main form 1040 where it is added to your other income, deductions, dependents and credits to calculate your income tax. You also pay 15% self-employment tax on your net profit, this is the equivalent of social security and Medicare taxes for self-employed people. The combined income tax and self-employment tax is your total tax due.

You are also expected to make quarterly estimated tax payments from your self-employment income. If you don't make quarterly payments, you may owe an under-payment penalty even if you pay in full when you file your return. If you are single with no dependents, somewhere between 30% and 40% of your business profits will be taxable.

As a ride-share driver, your main expense will be mileage on your vehicle. You can deduct about 57 cents per mile for the work miles you drive making deliveries, as long as you keep records of your mileage. That amount includes allowances for gas, repairs, insurance and wear and tear. There is another method for deducting vehicle expenses that is more complicated and usually results in less of a deduction for most people, someone can explain it later if needed.