I did some consulting this year as self employed but don’t have employees. What version of TurboTax do I need?

[RobertB4444]

TurboTax Self Employed will cover all of your needs starting out as a small business person.

[B_T007]

I don’t do full time self employed just some consulting some times full time. Isn’t self-employed version more than I need? Doesn’t Deluxe have the schedules I need to file?

[B_T007]

I do not see a version of TurboTax called Self Employed???

[MaryK4]

TurboTax Self Employed is the online version for self proprietors and independent contractors. If you use the download or disk version, look for TurboTax Home and Business.  TurboTax Self Employed/Home and Business is the best choice because it will allow you to get the most deductions and make sure that you are reporting all your business income and tax information.  Unfortunately, the IRS requires the same information regardless of if it is part-time consulting or larger businesses.  Preparing the taxes correctly is one of the costs of doing business (remember you can deduct tax prep fees as a business expense) and it will save you time and money now.

@B_T007

[B_T007]

Can’t I just complete a schedule C?

[ThomasM125]

The schedule C needs to be completed and filed with your form 1040, as the income on it must be transferred over to form 1040. The desktop version of TurboTax Deluxe does support support schedule C. I'm not sure if the online version does as well, but you could start there online and if you need to upgrade to self-employed you will be prompted to do so when you attempt to enter your business income and deductions.

[VolvoGirl]

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc or 1099NEC it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

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

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 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