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philjac2002
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

 
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AmandaR1
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

It looks like you are self-employed, so you'll need to track your income and expenses throughout the year and you'll need your totals for next year's tax filing. Depending on how much you make, you may need to make quarterly income tax payments as well.

Learn more about if you need to pay estimated taxes at this TurboTax blog post here.  

If you have other questions, let me know what you have going on this year!

View solution in original post

10 Replies
SweetieJean
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

2018 tax returns are not done until early 2019
VolvoGirl
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

You don’t do 2018 returns until the end of 2018 and they are due in April 2019.  We are currently doing our 2017 returns now for the year that just ended Dec 31, 2017.

Why aren’t you filing a 2017 return.  Are you asking about 2018 because of the new tax changes just passed into law?  What kind of income will you have?  Are you self employed?  Do you need self employment info?
philjac2002
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

I was just wondering about the exemptions. Income I will have in 2018 will be from self-employment.  I did not have enough income in 2017 to even file.
macuser_22
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

If self-employed and have more than $400 income you are required to file.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
philjac2002
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

I was under the impression a person under 65 and single must only file if their income exceeds $10,400.
SweetieJean
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

True in most cases, but not if you have self employment income. Can anyone else claim you as a dependent?
VolvoGirl
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

That is only for W2, 1099R and investment income.  You must report all self employment income $400 or more.   Even if you don't owe any regular income tax on it you will owe Self Employment tax on a Net Profit of $400 or more.  And the IRS gets copies of all your W2 and 1099 etc. but they don't get your expenses so they don't know how much of a profit you have or a loss.
AmandaR1
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

It looks like you are self-employed, so you'll need to track your income and expenses throughout the year and you'll need your totals for next year's tax filing. Depending on how much you make, you may need to make quarterly income tax payments as well.

Learn more about if you need to pay estimated taxes at this TurboTax blog post here.  

If you have other questions, let me know what you have going on this year!

View solution in original post

philjac2002
New Member

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

Thank you Amanda. Good information.
VolvoGirl
Level 15

I am not filing for 2017. Just 2018. So when and what should I be doing to prepare for that?

Here's some general info on self employment.  You will need to keep good records.  You may get a 1099Misc or 1099K 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.  You might want to use Quicken or QuickBooks to keep tract of your income and expenses.  There is one called QBSE QuickBooks Self Employed that works with Turbo Tax and will give you a free online tax return next year.

QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return  <a rel="nofollow" target="_blank" href="http://quickbooks.intuit.com/self-employed">http://quickbooks.intuit.com/self-employed</a>

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.

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.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  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
<a rel="nofollow" target="_blank" href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center"...

Pulication 334, Tax Guide for Small Business
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p334.pdf">http://www.irs.gov/pub/irs-pdf/p334.pdf</a>  

Publication 535 Business Expenses
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p535.pdf">http://www.irs.gov/pub/irs-pdf/p535.pdf</a>

PAYING ESTIMATES
The first year you don't need to pay estimates as long as you pay in (by withholding) as much as your tax was last year.  But if you will have a big income you should send in estimates so you don't owe too much next April on your tax return.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
 
- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
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