A whole new world now that one of us is on a 1099-NEC - TurboTax Self-Employed?

[HappyMommy]

This week, my husband started a new job in which he is treated as a contractor of sorts and will receive a 1099-NEC instead of a W2. No taxes will be taken from his pay as is typical in this situation. I know that I should make quarterly estimated tax payments and have read the below articles to help me better understand everything we need to know.

My questions are:

1. Am I right in understanding that the TurboTax Self-Employed "software" is what I can use to help me in estimating and making those payments?
2. Does it calculate deductions for business expenses?
3. Does it help me determine what I need to pay and to who (i.e. fed, state, SS, Medicare)?
4. Is there a digital download version versus the "using it on the web" sort of of thing available?

Here are the articles I've reviewed up to this point:

• https://turbotax.intuit.com/tax-tips/self-employment-taxes/how-to-file-taxes-with-irs-form-1099-misc...
• https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-guide-to-paying-quarterly-taxes/L6p8C53...

Huge thanks in advance!

[ColeenD3]

Yes, you have the choice of Self-employed (online) and Home and Business (download). Either will give you access to Form 1040-ES.

What do you mean by calculate deductions? If your expense is 100%, you would total that particular expense for the year and enter it under its proper category. If it is prorated personal and business, then yes, TurboTax can help with that calculation.

Yes, the program will help determine your estimated payments.  Estimated payments

[HappyMommy]

Thank you for the quick response. By deductions I essentially mean that we will have things that we can "write off" as a business expense for him now (i.e. things he has to purchase for his job each month) and I want to make sure I'm not just being told the estimated tax payment is based on how much he made and what the tax bill is associated with that. In other words, determining what our tax bill is after those expenses are deducted from the tax bill. 

[ToddL99]

Yes -- your estimated tax payment is based on the businesses net income, i.e.  the businesses gross income  less the expenses incurred in generating that income.

Example: If total business sales are $1000 and total business expenses are $400, then your net business income is $600. Any estimated tax would be based on $600.