You'll definitely need to file a 2020 return with the IRS if you had $400 or more in self-employment net earnings (gross income minus expenses). The IRS treats this income as a business.
- You'll also need to know if your parent(s) or anyone else is claiming you as a dependent.
If you haven't incorporated, you can file a Schedule C, Profit or Loss From Business with your personal income tax return. TurboTax automatically generates a Schedule C when you enter your business income and expenses.
When you're self-employed, if it's directly related to the work you do, you can deduct it as an expense.
- Work-related expenses reduce your taxes by lowering the amount of self-employment income you get taxed on. For example, if you made $50,000 in self-employment income and had $5,000 out-of-pocket expenses, you'd only get taxed on $45,000.
- For state-specific questions regarding your work, click here to find your state’s Department of Revenue.
- For additional information, click here.
You may use the following TurboTax products to report your business:
- If you're using the TurboTax Online version, you may use TurboTax Self-Employed, and TurboTax Live Self-Employed.
- If you're using the TurboTax CD\Download version, you may use Deluxe, Premier, or Home & Business.
- See What are the advantages of the TurboTax CD/Download software over the Online version?
Note: The higher the version, the more step-by-step guidance you'll receive.
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Yes, you can file your taxes for the first time using TurboTax. You will need TurboTax Self-Employed if you are filing a Schedule C. Please go to TurboTax Self-Employed to create an account. For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit.
Once you create a TurboTax account, you can follow the on-screen instructions to complete your return.
To set up your YouTube business, please follow the instructions below :
- Open or continue your return.
- Search for schedule c and click the Jump to link in the search results.
- Answer Yes to Did you have any self-employment income or expenses.
- Follow the onscreen instructions.
NOTE: If you need to report a 1099-NEC, 1099-MISC, or 1099-K, then you can do so while entering your self-employment income on the Schedule C screens.
If you have any additional questions, comment below and we can assist you further.