I work from home & will have only made about 4000 when 2017 is over. I have a son that I paid daycare expenses for & I am the head of household. Can I get a refund still?

[krisbrown0116]

My son is 3 years old and I paid daycare fees.

I will have made less than 4000 the 2017 year.

I am head of my household. I need the electricity, internet, and home phone in order to work since I work from home. my light bill is $120 a month, and my internet/phone bill is $64 a month, my laptop I need in order to work was $350.

Will I get the EIC, the Child Care credit, and a credit for having a dependent? Even though I didn't make a lot of money will I have to owe the irs? I am not sure how the 1099 form works.

[TaxGuyBill]

If that is your only income, you will get a refund (due to the Earned Income Credit).

So you won't need to worry about making Estimated Tax payments.

[VolvoGirl · Accepted solution]

Some general info......  You will need to keep good records.  You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small.  You might want to use Quicken or QuickBooks to keep tract of your income and expenses.  There is one called QBSE QuickBooks Self Employed that works with Turbo Tax and will give you a free online tax return next year.
 http://quickbooks.intuit.com/self-employed

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  will need to use the online Self Employed version or any of the Desktop installed programs will handle it.  

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.  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.

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    

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

[VolvoGirl]

Oh but since you have a low income you will probably qualify for the Tax Freedom website.  Here are the instructions for 2016 returns.  

There is also The Turbo Tax Freedom website which is free for federal and state.  And has more forms than the Federal Free Edition, like the full 1040 return and Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Tax Freedom website  you just need to meet one of these 3 things
AGI $33,000 or less
Active duty military with AGI of $64,000 or less
OR qualify for EIC (earned income credit.)

In order to use the Tax Freedom Edition, you have to start it at a special website:
<a rel="nofollow" target="_blank" href="http://turbotax.intuit.com/taxfreedom/">http://turbotax.intuit.com/taxfreedom/</a>

When you get to Tax Freedom use the link to "I Qualify, Start Now" at the bottom instead of the sign in link. And you have to create a new account, if you use the same account info it will take you back to Turbo Tax.

How to switch to the Tax Freedom edition
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition">https://ttlc....>