You will be able to claim all your expenses related to your income. You may have to pay taxes because when you are self-employed, you have to pay Self-employment Taxes (SE taxes) in addition to income taxes. The SE tax rate is 15.3% with 12.4% for Social Security and 2.9% for Medicare.
For additional information, click on How does my side job affect my taxes?
To enter self-employment income and expenses, you may use the following TurboTax versions:
- TurboTax Online Self-employed or
- TurboTax CD\Download Deluxe, Premier or Home & Business.
- What's the difference between TurboTax Online and the TurboTax CD/Download?
To enter your income and expenses:
- Type Sch C in the Search box and then select the “Jump to” link.
- This will take you to where you can enter any cash, personal checks or credit card payments (Form 1099-K) related to your self-employment.
- You may first be asked some general questions about your business. After you answer them, you’ll be taken to the Let's get income for (your line of work) screen where you can enter this income as Additional Income.
- When you’re self-employed, you’ll also want to review your expenses. If they are work-related expenses, you can deduct them.