Am I able to use TurboTax if I'm self employed? If so, how do I go about doing that? This is my first year filing as self employed and I am a little overwhelmed!

[tabbitha_taber]

I have looked at the IRS website and tried to read and absorb as much as possible but it is slightly overwhelming. I remembered using Turbotax a few years back and it was super easy so I didn't know if Turbotax had the option for self employment taxes. I don't even know where to begin with this!

[VolvoGirl · Accepted solution]

Yes.  You file schedule C in your personal tax return.  Online will open in December.  You will need to use the Self Employed version.  You can buy the Desktop program now.  It is called Home & Business for The Desktop program.  Https://turbotax.intuit.com/personal-taxes/cd-download/

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

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

Pulication 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

To enter cash income without a 1099Misc into the Online Self Employed version,   if you see a Business tab at the top, after Personal Info, follow the instructions to enter the cash as General Income.  If you do not see a Business tab, choose the second topic of Additional Income underneath the 1099-Misc income topic

[tabbitha_taber]

Thank you so much! And what is a 1099 for?

[VolvoGirl]

If someone (mainly other businesses) pays you more than $600 for the year they are suppose to give you a 1099Misc to report it.  But you still need to report all your income even if you do not get a 1099Misc from them.  

Here is a blank one to see what to expect  

[VolvoGirl]

Oh by the way you are also suppose to give a 1099Misc to anyone you pay.  You can prepare them free with Turbo Tax from the online self employed version or the desktop Home & Business version using Quick Employer Forms.  QEF will open in January.
<a rel="nofollow" target="_blank" href="https://quickemployerforms.intuit.com/welcome.htm">https://quickemployerforms.intuit.com/welcome.htm...>

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