I worked a normal job for the first half of this year before starting a sole proprietorship. How does this affect my taxes?

Hi nerdee139, thanks for posting the question.

 

Assume your normal job is an employee of a company  which will issue a W-2 at the end of tax year 2023. You then report the box 1 taxable wage and corresponding Federal income tax withheld on Form 1040.

 

A sole proprietorship is self employment; you report on Schedule C Profit or Loss from Business. You would need to have a record of gross revenue and various out of pocket expenses by category. Net income from self employment is subject to income tax and self employment tax while net loss could reduce your other income such as W-2.

 

Below are links of relevant articles for your information.

A Tax Guide for Solopreneurs: Self-Employed Tax Tips

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-guide-for-solopreneurs-self-employed-tax-tips-/L6N77a4mr

Estimated Tax FAQs

https://www.irs.gov/faqs/estimated-tax 

Pay As You Go, So You Won't owe: A Guide to Withholding, Estimated Taxes, and Ways to Avoid the Estimated Tax Penalty

https://www.irs.gov/payments/pay-as-you-go-so-you-wont-owe-a-guide-to-withholding-estimated-taxes-and-ways-to-avoid-the-estimated-tax-penalty 

Lastly, we have a team of experts ready to answer your questions. We would love to hear from you to resolve your issues.

How do I contact TurboTax?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9ZKpQB_US_en_US

Hope the above helps.

Thank you,

Kitty