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wifi2966
New Member

I am a contractor as 1099. How do I file in TurboTax Home & Business

I need to file my personal taxes and my 1099 independent contractor. I work under a company as a independent contractor I don’t own the company. I want to be able to claim my mileage from last year and other deductions. When I use this software it’s wanting to treat it like I own the business but I’m just an independent contractor. How do I accomplish this in TurboTax Home& Business 2019

1 Best answer

Accepted Solutions
MinhT1
Expert Alumni

I am a contractor as 1099. How do I file in TurboTax Home & Business

As an independent contractor, you are self-employed and are considered by the IRS as operating a small business doing what you doing such as electrician, photographer, etc...

 

You can use TurboTax Home & Business to file your tax return.

 

When TurboTax refers to your business, it means your small business, and not the company you are working for.

 

Please read this TurboTax article for more information.

 

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3 Replies
MinhT1
Expert Alumni

I am a contractor as 1099. How do I file in TurboTax Home & Business

As an independent contractor, you are self-employed and are considered by the IRS as operating a small business doing what you doing such as electrician, photographer, etc...

 

You can use TurboTax Home & Business to file your tax return.

 

When TurboTax refers to your business, it means your small business, and not the company you are working for.

 

Please read this TurboTax article for more information.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
wifi2966
New Member

I am a contractor as 1099. How do I file in TurboTax Home & Business

Thank you. I apologize I’m am so confused maybe you can help clear this up. Alright I understand part of what you said I know I’m an independent contractor, but I don’t run the business I’m not a sole proprietor or anything just a regular 1099 independent contractor for the company I work for but it’s not my small business. When I use TurboTax home & business it’s confusing because under business tab it asks what my business name is and it’s address but I don’t own the business just work as an independent contractor. What would I do in this case so I can claim my deductions. Again I apologize I’m kind of new to this and have never used TurboTax. 

VolvoGirl
Level 15

I am a contractor as 1099. How do I file in TurboTax Home & Business

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.  So you do have a business YOU ARE the business.  You use your name and address.

 

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

 

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 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.

 

FOR 2019

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 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

 

For 2019 Schedule C Net Profit or Loss now goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

 

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

 

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.  How to enter self employment income

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

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