topic I'm trying to find a way to ask a longer question. in Get your taxes done using TurboTax

I'm trying to find a way to ask a longer question.

lovebugruck — Sat, 05 Sep 2020 07:53:52 GMT

So, if anyone can help me understand some things about how turbotax works, it would be much appreciated. 1) As an independent contractor, I have been told that I owe quarterly taxes instead of only once a year. First, is this correct? Second, does turbotax help with this? 2) Is the price for the self-employed package for all quarterly filings or just one? 3) Does the self-employed package cover any and all taxes accrued in 2020? thanks for the help.

Re: I'm trying to find a way to ask a longer question.

fanfare — Sat, 05 Sep 2020 11:11:07 GMT

Turbo Tax is for your Form 1040.

TurboTax will e-File your 1040. You're on your own to make Estimated Tax payments. yes they are due each quarter.

TurboTax will try to estimate your payments for the following year based on this year.

Are you self-employed in 2019 and didn't file yet ?

Re: I'm trying to find a way to ask a longer question.

xmasbaby0 — Sat, 05 Sep 2020 12:14:51 GMT

If you made less than $36,000 in 2019 you would be able to use Free File software; otherwise you will need ether online Self-Employed or any version of the desktop (CD/download) software which can prepare the Schedule C you need for your business expenses.

If you are new to being self-employed you need to understand some things. You will be paying self-employment tax for Social Security and Medicare as well as ordinary income tax. Paying estimated quarterly taxes will prevent a bigger tax bill at tax filing time and prevent an underpayment penalty.

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

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

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

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

https://ttlc.intuit.com/questions/3401494-is-turbotax-self-employed-right-for-me

If you qualify to use it, there is another full-featured free version of the software:

Try Free File:

You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

https://www.calcxml.com/calculators/self-employment-tax-calculator (non-TT site)

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

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

Re: I'm trying to find a way to ask a longer question.

SteamTrain — Sat, 05 Sep 2020 13:35:40 GMT

And note, that you are not filing any actual tax forms quarterly (other than a payment voucher and a check if you pay by mail ).......you are just pre-paying an estimate of your taxes quarterly, based on your profit for that quarter, so that you don't get hit with a huge tax bill and potential penalties when you do end up filing your complete full-year tax return forms at tax-time.