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I received a 1099 misc for accompanying for church services throughout the year. I am a stay at home mom and do this on the side. I am an RN by profession but am not currently employed as an RN. I wouldn't classify this as my main job, but I feel like TT is wanting me to call myself self-employed and is asking me if I "materially participated" and for a principal business code. Is there a way to enter this just as extra income and not as if I am self-employed? Is that the correct route to go? I made just over $2k so enough to need to file....Thank you for your help!
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Yes, self-employed is how the tax code states you need to report the $2,000 side job income. Had this been a part-time job at Starbucks or a Walmart, you would have paid in Federal Income Tax, State Income Tax (if applicable), Social Security Taxes and Medicare Taxes. Filing as self-employed allows the government to collect all these taxes.
Please see the following TurboTax FAQ for additional information:
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:
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.
I am in a similar situation and did not make any estimated quarterly tax payments or self-employed fica payments. Does turbotax calculate these and deduct them from my refund? Asked a different way, If I file using turbotax am I actually paying the self-employed fica taxes correctly? Or do I need to pay these a different way?
Yes. Turbo Tax calculates the self employment tax and adds it to your tax due or reduces your refund.
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.
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