topic Self employed deductions with deluxe version in Get your taxes done using TurboTax

Self employed deductions with deluxe version

JRAloia — Wed, 07 Apr 2021 21:03:32 GMT

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.

Re: Self employed deductions with deluxe version

LenaH — Wed, 07 Apr 2021 21:29:27 GMT

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.

Re: Self employed deductions with deluxe version

JRAloia — Thu, 15 Apr 2021 17:26:08 GMT

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?

Re: Self employed deductions with deluxe version

JamesG1 — Thu, 15 Apr 2021 19:53:18 GMT

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.