Complex tax question

[oamais01]

My boyfriend worked for shipt and made 1190 and also Instacart (both as a side gig he works a main job for the state) and made 175 he put it into my account which one of us is responsible for paying the taxes ? Which turbo tax products do we need? And which forms do we fill out?

[VolvoGirl · Accepted solution]

Your account doesn't matter.  He owes self employment tax on it.  He reports all his income on the same tax return.

To report self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You will need to keep good records.  You may get a 1099NEC 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 and if you don't get the 1099NEC.  For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

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 or 1099NEC 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.  

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.

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

[xmasbaby0]

Some words of caution........why did your BF use your bank account?   When he files his tax return he needs to use an account that is his own bank account....not yours.   If the IRS issues his refund to an account that is not in his name, it will be returned to the IRS and then your BF may have to wait for weeks or even months to receive a check instead.

https://ttlc.intuit.com/questions/1901159-can-i-deposit-my-tax-refund-into-someone-else-s-account

[fanfare]

If he puts it in your account it is a gift ; gifts are not taxable.

It is still his income.

@oamais01 

[Mike9241]

@fanfare if he goes for direct deposit and his name is not on the account the bank should reject it.  however, based on what little info was provided he'll probably owe due to SE tax.