New LLC In Additional to Regular Job

[tiny1231]

I have a normal W2 job, but also started an LLC as a side hustle. How to I include the LLC income on my taxes alongside my normal job?

[Kelly Thomas C]

I am assuming you are the only owner of your new LLC. If yes, you will use the TurboTax version for self-employed. In addition to reporting your W2 wage income, you will report your revenue and expenses ifrom your LLC in this tax return. It will be recorded in the Schedule C and filed with your personal 1040 tax return.

I hope this helps...and good luck with the new enterprise!!

Kelly C.

CPA

[tiny1231]

Yes that helps a lot! And makes sense. And your assumptions are correct.

Is there any reason that during the next year, I would need to submit those quarterly estimated tax payments? Or is it okay to simply do what you advised above, once a year with my normal taxes?

[Kelly Thomas C]

You will want to keep good track of your estimated PROFIT from your new enterprise. Revenue less expenses equals profit, as you probably know. You will want to budget about 25% of that number as a tax expense, be ware that self employment taxes are a little over 15% plus income taxes will be triggered by self employment profits...more if you want to get back a refund, less if you don't mind a shocker tax owed. Note. Taxes will be owed only based on the total year net profit...not the quarterly profit. So if you had a great quarter 1 and you made and tax estimate payment, and then you had a lousy quarter 2, you would most likely skp the Q2 tax estimate.

Kelly C

CPA

[tiny1231]

1) Am I able to submit those quarterly payments through TurboTax?

2) During the normal once a year tax season, will I simply record my total earnings and costs from the LLC, and also the taxes I have paid to date through the quarterly payments already? Are those automatically brought into TurboTax somehow?

[Kelly Thomas C]

You will want to keep track of your quarterly tax payments and make sure those are reflected in Line 26 of your Form 1040. 

Kelly C

CPA