Individual Return Questions

[RN_Dena]

Few questions for our Individual Federal Return (married filing jointly) I have used turbotax for many years.  In years past I had W2 income and my husband has filed as a self employed (utilizing a schedule c). This past year he will need to file a portion of the year as self employed but around august he started a multimember LLC and his income change over to only that.  Can I still use the same software on turbotax that I used before to enter both his incomes...his old plain self employed and his new schedule k-1.   

Also we did these things this year...purchased a home (after not owning one for more than 3 years), opened a home equity line of credit, got a payout from a cash balance retirement account through my work (w2 income), had a baby, I took an FMLA maternity leave and got paid via short term disability....I am sure I have forms for all of those items. 

I believe we used TurboTax Self Employed in prior years---will I still use this. 

What things should I be looking to fill out...and will turbo tax ask me questions to fill out information about all of those items. 

Thanks so much!

[DianeW777]

Yes, you can file both a Schedule C and also record and include his K-1 from the new LLC. And you will still want to use TurboTax Self Employed for this year.  TurboTax will ask all the questions for your changes and here is information to help get you started.  Congratulations.

Purchasing a home could allow you to use itemized deductions instead of the standard deduction if  you have enough expenses.  Be sure to enter all of your expenses and TurboTax will use the best option for you.

• The standard deduction for married filing jointly is $25,900 up $800 for 2022.  
• The expenses used most often are mortgage interest, income taxes for state and local, as well as property taxes and personal property tax if that applies to your state.  Also contributions.  And occasionally some others.  Medical expenses must be greater than 7.5% of your adjusted gross income and only the excess can be used.
  • How do I change from standard deduction to itemized deductions?
  • Can I deduct interest on my home equity loan? (proceeds must be used to buy, build, or substantially improve your home)

A baby will provide the child tax credit (CTC) or the additional child tax credit (ACTC) which can be up to $2000 of reduced tax and/or create a higher refund.

• What is the Child Tax Credit?

If you income is moderate, you may also be entitled to the earned income tax credit (EITC).

• Qualifications for the EITC!

The income for maternity leave may be included in your W-2 or you may get a second W-2 if it is paid by a third party insurer.

[RN_Dena]

Perfect thank you! All of this was helpful and accurate. 

[Denisev1220]

You can also deduct any points paid when purchasing your home.