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Level 1
June 21, 2021
Question

Self employed

  • June 21, 2021
  • 2 replies
  • 24 views

I am not self employed ? 

    2 replies

    Level 15
    June 21, 2021

    Did you enter income from a 1099NEC or 1099Misc?   

     

    WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION

     

    The information that you can enter in Free Edition is pretty limited now.  Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez   If you started in the Free Edition and entered any data that required any of those three schedules, you have to upgrade to a paid version.   The Free Edition cannot be used for self-employment income, investment income, rental income or a student loan interest deduction,

     

    https://www.irs.gov/forms-pubs/about-form-1040 

     

    CLEAR AND START OVER

    https://ttlc.intuit.com/questions/2586254-how-do-i-clear-and-start-over

     

     

     

    If you qualify to use it, there is another full-featured free version of the software:

    Try Free File: 

    You qualify if your income was $39,000 or less, or $72,000 or less if active duty military, or if you qualify for Earned Income Credit

    https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

     

     

    Note:  If you do not qualify to use Free File then you will have to upgrade to Deluxe or higher in the paid versions of the software.   

     Online Deluxe $60  State software $50

     

     

    Or—-Use this IRS site for other ways to file for free

     

    https://apps.irs.gov/app/freeFile/

     

     

     

     

    If your TurboTax fees are higher than expected, you can reduce them by removing add-ons:

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    Hal_Al
    Level 15
    Level 15
    June 21, 2021

    Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-NEC or 1099-MISC); The IRS considers anything on a form 1099-NEC to be self employment income. Enter the 1099 income, at Other Common income / income from a 1099-NEC . TurboTax (TT) will complete Schedule C  for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $432. These types of payments are frequently done this way. Your "employer" is not the only one.

    The IRS also considers undocumented cash income (no W-2 or 1099), for work performed, to be self employment income.