You'll need to sign in or create an account to connect with an expert.
The Standard Deduction is separate from your business expenses. Nothing to do with business.
For your self employment on Schedule C. You enter all the gross income you received. Then enter all your expenses and pay tax on the Net Profit or Loss. You can deduct a business loss in addition to taking the Standard Deduction on all your personal income.
For you business income.
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 (If it is 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.
The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 10a. Turbo Tax automatically calculates the SE Tax and Adjustment.
The Standard Deduction is separate from and in addition to your business expenses. You get both.
Th standard deduction is for the personal part of your tax return. You get to deduct your business expenses on schedule C (the business part of your tax return).
As VolvoGirl said, you include all your ride and non ride payments as income. Then you deduct all your expenses, including fees.
What may be confusing to you is the word STANDARD since it is used twice in your return ... on the Sch C you can take the STANDARD MILEAGE rate for the vehicle expenses and then later take the STANDARD DEDUCTION on the form 1040.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
theleeb
Level 3
vze56v6x
Level 2
Fatbottomboy
New Member
Don Riley
Level 1
ucog35n
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.