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I'm trying to find a way to ask a longer question.

So, if anyone can help me understand some things about how turbotax works, it would be much appreciated. 1) As an independent contractor, I have been told that I owe quarterly taxes instead of only once a year. First, is this correct? Second, does turbotax help with this? 2) Is the price for the self-employed package for all quarterly filings or just one? 3) Does the self-employed package cover any and all taxes accrued in 2020? thanks for the help.
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3 Replies

I'm trying to find a way to ask a longer question.

Turbo Tax is for your Form 1040.

 

TurboTax will e-File your 1040. You're on your own to make Estimated Tax payments. yes they are due each quarter.

TurboTax will try to estimate your payments for the following year based on this year.

 

Are you self-employed in 2019 and didn't file yet ?

I'm trying to find a way to ask a longer question.

If you made less than $36,000 in 2019 you would be able to use Free File software; otherwise you will need ether online Self-Employed or any version of the desktop (CD/download) software which can prepare the Schedule C you need for your business expenses.

 

If you are new to being self-employed you need to understand some things.  You will be paying self-employment tax for Social Security and Medicare as well as ordinary income tax.  Paying estimated quarterly taxes will prevent a bigger tax bill at tax filing time and prevent an underpayment penalty.

 

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

 

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

https://ttlc.intuit.com/questions/3401494-is-turbotax-self-employed-right-for-me

 

If you qualify to use it, there is another full-featured free version of the software:

Try Free File: 

You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

 

https://www.calcxml.com/calculators/self-employment-tax-calculator     (non-TT site)

 

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I'm trying to find a way to ask a longer question.

And note, that you are not filing any actual tax forms quarterly (other than a payment voucher and a check if you pay by mail ).......you are just pre-paying an estimate of your taxes quarterly, based on your profit for that quarter, so that you don't get hit with a huge tax bill and potential penalties when you do end up filing your complete full-year tax return forms at tax-time.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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