Want to add self employment income in 2021
and I have turbox cd for 2021 premier version..
I could add business income but I dont see self employment form or calculation
Only business income addition and qualified business income deduction..
no self employment income tax deduction
is it because I have premier version and self employment was included in premier version of 2021?
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All the desktop program have all the same forms. So Premier has schedule C for self employment. You can switch to Forms mode to see. Open Schedule C and SE. Self employment is business income and goes on schedule C. Not sure what what you don't see? Do you have a net profit on schedule C?
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 (If it is 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 (FICA). 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 23. 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. It will be on Schedule 1 line 14 which goes to 1040 line 10a. And subtract the QBI Adjustment on 1040 line 13.
Do you also have W2 income? The SE tax includes what you already paid in from your W2 so your schedule SE tax will only be the difference up to the max amount of $8,853.60 for social security. The max for social security for 2021 is 6.2% of wages plus schedule C net profit up to $142,800. Medicare is 2.9% (both er & ee parts) of all wages & schedule C profit - no max.
Business income and Business expenses are self-employment income and expenses. When you are self-employed you are a business owner and report the business income and expenses on Schedule C.
All the desktop program have all the same forms. So Premier has schedule C for self employment. You can switch to Forms mode to see. Open Schedule C and SE. Self employment is business income and goes on schedule C. Not sure what what you don't see? Do you have a net profit on schedule C?
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 (If it is 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 (FICA). 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 23. 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. It will be on Schedule 1 line 14 which goes to 1040 line 10a. And subtract the QBI Adjustment on 1040 line 13.
Do you also have W2 income? The SE tax includes what you already paid in from your W2 so your schedule SE tax will only be the difference up to the max amount of $8,853.60 for social security. The max for social security for 2021 is 6.2% of wages plus schedule C net profit up to $142,800. Medicare is 2.9% (both er & ee parts) of all wages & schedule C profit - no max.
I am starting a new topic about 8949 ....so ppl dont get confused.
Probably because your total income is now above the EIC limits for your filing status.
IRS website for EIC tables - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned...
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