I have a W2 and also made $200 in additional income as independent contractor. Do I have to submit a Schedule C for the additional income even though it's below $400?

[gao91]

I'm getting answers that I won't owe any SE taxes anyway since it's only $200, but also finding answers I have to report everything no matter what. (I only made $5000 on W2 if that matters. And did not receive a 1099 for the $200.).

Please help. Can I still use the Free version to just report my W2 income or do I really have to add Schedule C and buy Deluxe? First time doing this. 

Thanks

[Hal_Al · Accepted solution]

You do not need to file Sch C, since the amount is less than $400. But, if you don't use Sch C, the $200 will not be classified as earned income, for the Earned Income Credit. People under 25 cannot get the EIC, unless they have kids.

Furthermore, since your total income is less than the filing threshold of $10,400 ($6350 if you are somebody's dependent); you do not even need to file a tax return. You are still allowed to file if you need to get back income tax withholding. You cannot get back social security or Medicare tax withholding.

You cannot use the free edition because you still need the "long form" with or without Sch C.

____________________________________________________________________________________________________________

TurboTax also has another free product called the FREEDOM Edition (not to be confused with the regular Free Edition).  It has free Federal preparation and free State preparation. There is no efiling fee. It is not available after October 15

The FREEDOM Edition can handle a 1099-MISC.

The Freedom Edition is more fully-featured than the regular Free Edition.  The Freedom Edition can prepare Schedule A, C, D, E, and F that the Free Edition cannot.  It will prepare a Form 1040 or 1040A or 1040EZ.

For Freedom Edition a user needs to meet only ONE of these qualifications:

•      AGI of $33,000 or less
•      or active duty military (including Reservists and National Guard) with a military-issued W-2 and a 2017 AGI of $66,000 or less
•      or eligible for the Earned Income Credit (EIC aka EITC).

The FREEDOM Edition is located at:
https://turbotax.intuit.com/taxfreedom

How to switch and start over in Freedom Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition

[gao91]

I didn't know about Freedom. This was a big help. Thank you so much! Thank you Hal!