I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?

ambertinker — Sun, 01 Sep 2019 14:52:01 GMT

Re: I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?

Critter — Sun, 01 Sep 2019 15:15:16 GMT

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-MISC); The IRS considers anything in box 7 of 1099-MISC to be self employment income. Enter the 1099-Misc income, at Other Common income / income from a 1099-MISC . TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $400. These types of payments are frequently done this way. Your "employer" is not the only one.

The IRS also considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income.

How do I report income from self-employment?

If you received a 1099-MISC for your self-employed income

Type 1099-misc in the Search box and then select the Jump to link. This will take you directly to the section where you can enter your 1099-MISC. You’ll also be able to enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment.

If your self-employment income was only from cash, personal checks, credit card payments, or cryptocurrency

Type Schedule C in the Search box and then select the Jump to link. This will take you to where you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment. You may first be asked some general questions about your business. After you answer them, you’ll be taken to the Let's get income for (your line of work) screen where you can enter this income as Additional Income.

Related Information:

If you are new to being self employed and 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

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business 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

How does my side job affect my taxes?

You’re considered self-employed—even if it’s just something you do on the side, like drive for Uber, babysit, or blog.

Your taxes are handled differently than when you’re an employee of a company.

As a self-employed individual you:

will pay self-employment tax(because income tax and Social Security aren’t deducted from your pay)
will get a 1099-MISC or 1099-K (unless you only accept cash or personal checks)
file a Schedule C, Form 1040(this is how you report business expense or loss of income)
can deduct money you spent on work-related expenses(like mileage, home office expenses, and cell phone use)
can estimate the taxes that are due and make quarterly estimated tax paymentsduring the year

Get started by entering your income from self-employment. We’ll handle the rest, from creating the forms you need to reviewing work-related expenses that can help reduce your taxes.

Related Information:

Re: I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?

Carl — Sun, 01 Sep 2019 16:53:00 GMT

As far as the IRS is concerned, if you are self-employed you do "in fact" own and run your own business. All of your self-employment income is reported on SCH C as a part of your personal 1040 tax return. Self-employment income is any and all income paid to you in cash, as well as that income reported to you on a 1099-MISC in box 7.

topic I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed? in Business & farm

I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?

Re: I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?

How do I report income from self-employment?

If you received a 1099-MISC for your self-employed income

If your self-employment income was only from cash, personal checks, credit card payments, or cryptocurrency

Related Information:

How does my side job affect my taxes?

Related Information:

Re: I am self employed working part time for 1 company. The self employed turbotax form is assuming I run my own business which I don't. How do I proceed?