I'm self employed for two months of 2018 Jan-Feb then from March I start a full time (W2) job. I paid my estimated taxes, how would i file my tax return for 2018 in 2019?

[wbashir86]

What is confusing me, that after paying my estimated taxes for those two months of 2018, I start a W2 job. Now in 2019 when i file my tax return for entire 2018, how do i mention it. Should i just use my W2 since I have already paid my tax for self employment?

what package of Turbo-tax would be suitable for me.

[PaulaM]

For tax year 2018, you would continue to use the Self-Employed version because you had self-employed income in those two months. You can also enter a W-2 in the self-employed software. 

In the program, you will enter the amount of estimated taxes that you have paid in 2018. The entry of your W-2 will also have withheld taxes. The two amounts will be totaled, and if you have paid too much for the year, refunded for any amount that exceeds your tax liability.

You will also want to 'dispose' of your 2018 business in that tax year. This will calculate any remaining depreciation that you might have, and remove forms/schedules that will no longer apply for tax year 2019.

[wbashir86]

thank you for the quick reply, What do you mean by 'dispose'? Do i have to notify IRS that I am no longer self employed OR turbo tax software will ask about it like "Did you stop working as self-employed?"

[wbashir86]

Also i am using quickbooks to keep record of spending, but it seems to be giving me estimate about faderal only, how do i calculate my state estimate taxes? MANY THANKS FOR YOUR HELP!!!

[PaulaM]

In the software, you go through your business profile and indicate that you disposed of your business just to remove the forms for the next year. You do not need to notify the IRS. What state do you live in?

[wbashir86]

I live in PA

[PaulaM]

You can use the worksheet in the link below. Note: You will only be making 1 estimated tax payment (for federal and state each) for the 1st quarter 2018 self-employed earnings.
<a rel="nofollow" target="_blank" href="http://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/2018/2018_rev-414i....>

[wbashir86]

Okay so when quickbooks tells me I have x amount on estimated tax, does it include both federal n state? If not then why should I use QB n keep track. Since QB is intuit product, would self employed version of Turbo tax import QB data? I'm not sure who to ask this..many thanks!!

[PaulaM]

QB has its own community where you can ask for help .<a rel="nofollow" target="_blank" href="https://community.intuit.com/quickbooks-online">https://community.intuit.com/quickbooks-online</a>
I can't answer whether you need QB or not. But estimated taxes should be a separate amount for each, because they are paid to separate taxing authorities.