topic Re: What IRS Forms to use in Retirement tax questions

What IRS Forms to use

T-MAC — Sat, 29 Aug 2020 22:56:16 GMT

I am retired, but I work as an Independent Contractor as a Stat Medical Courier.

My IC income is reported on a 1099-Misc

I receive Social Security, a Pension, a small VA Benefit, plus what I earn as an IC.

My wife income is Pension and Social Security.

We have small Interest and Dividend returns.

I have been using TurboTax for 20 years or so.

My gross IC Income will be in the $11,000-$14,000. range

I would like to know what IRS forms I should plan using relating to my Independent Contractor income.

My only expenses are for the use of my car; Cellphone; minor office supplies. I work out of my rented apartment where I live.

Thank you

A.T. McIntosh

Re: What IRS Forms to use

VolvoGirl — Sat, 29 Aug 2020 23:20:27 GMT

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses. There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.

FOR 2019

Here's a blank schedule C to see how it works

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

For 2019 Schedule C Net Profit or Loss goes to 1040 Schedule 1 line 3. Then the total on schedule 1 line 9 goes to 1040 line 7a.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% 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.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15. The SE tax is in addition to your regular income tax on the net profit. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a. Turbo Tax automatically calculates the SE Tax and Adjustment.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 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

Re: What IRS Forms to use

rjs — Sun, 30 Aug 2020 02:26:24 GMT

You don't have to select which forms to file. When you use the Step-by-Step mode in TurboTax, you enter your income and expense information by answering the questions that TurboTax asks, and TurboTax fills out the proper IRS forms.

Re: What IRS Forms to use

phildonnia — Fri, 04 Sep 2020 16:31:10 GMT

You'll need Schedule C for your contractor income, and Schedule SE for your self-employment tax. Don't forget the last line of Schedule SE, where you deduct half of the self-employment tax from your income.

Your business expenses can be deducted on Schedule C. You must have records and receipts detailing what was purchased, and what the business purpose was. For car mileage, you must keep a log of where, when, and for what purpose you were using your vehicle.

You'll use Schedule B for Dividend and Interest Income.