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New Member

Married Filing Jointly with W2 and Self Employed Spouse

Hello, 

I am not sure which version of TurboTax we should be using. I am an employee and I get a W2 from my employer. My wife last year became a realtor (self employed?) 

Based on this, which version of TurboTax can we use to file jointly and also claim our deductions and all of my wifes itemization - mileage food, business space, internet phone, etc. 

Or can this not be done and we must file separately? 

Thank you very much

1 Best answer

Accepted Solutions
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Level 15

Married Filing Jointly with W2 and Self Employed Spouse

Ok ... first get a refund for the Business version you cannot use ... then if you want to use the downloaded version then the Deluxe will work just fine ( Basic if you don't need to do a state return).  The SE goes on the Sch C which is included with the personal tax return since she is not incorporated. 

 

You can go here TurboTax CD/Download Refund Request Form to request a refund if still within 60 days of purchase. 

You can purchase the 2018 desktop CD or Download desktop editions from this TurboTax website - https://turbotax.intuit.com/personal-taxes/cd-download/


If you are new to being self employed and  acting as your own bookkeeper and tax preparer you need to get educated ....   

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 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 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf



There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed


Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next 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.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button


View solution in original post

4 Replies
Highlighted
Level 15

Married Filing Jointly with W2 and Self Employed Spouse

Ok ... first get a refund for the Business version you cannot use ... then if you want to use the downloaded version then the Deluxe will work just fine ( Basic if you don't need to do a state return).  The SE goes on the Sch C which is included with the personal tax return since she is not incorporated. 

 

You can go here TurboTax CD/Download Refund Request Form to request a refund if still within 60 days of purchase. 

You can purchase the 2018 desktop CD or Download desktop editions from this TurboTax website - https://turbotax.intuit.com/personal-taxes/cd-download/


If you are new to being self employed and  acting as your own bookkeeper and tax preparer you need to get educated ....   

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 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 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf



There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed


Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next 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.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button


View solution in original post

Highlighted
New Member

Married Filing Jointly with W2 and Self Employed Spouse

Thank you very much!
Highlighted
Level 15

Married Filing Jointly with W2 and Self Employed Spouse

You should file a joint return .... and you can use ANY of the downloaded versions.  But if you want to use the Online program you must use the Self Employed version. 

Now you are posting from the TT Business version ... did you actually buy that version ?  Is your spouse incorporated for their Self Employment ?  

Highlighted
New Member

Married Filing Jointly with W2 and Self Employed Spouse

Hi, Thank you for the comment,

1. No it is not incorporated
2, I used business as I was unsure if we needed the business version

Can we use the TurboTax Deluxe ?
We went through that version that we usually use and we didnt see a self employed section with items that can be added as deductions.
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