If I upgrade to TurboTax Self-Employed, but then I find out that I don't need a schedule C, can I file a regular return with TurboTax Self-Employed?

[ppapi]

I just need to know if TurboTax Self-Employed can file a regular return as I was doing it with Deluxe (in case I don't need a schedule C)

[dmertz]

Yes, you can still file with TurboTax Self-Employed even if your tax return does not require Schedule C, but you would still be paying for TurboTax Self-Employed.  To return to a different version of TurboTax you would have to delete your tax return and start over.

Why would you not now know if you had gross income from self-employment?  Why would you upgrade to TurboTax Self-Employed if you do not have any gross income from self-employment?

[ppapi]

Thanks! I still don't know if my final profit will be above 20K or not. I need to calculate all expenses first. This is why I was asking. Thanks again.

[CassLO]

As long as you have not already submitted a payment or deducted the TurboTax fee from your refund, you can use the clear and start over feature to downgrade to another TurboTax Edition. Please see the TurboTax FAQ below for more information:

Can I downgrade to a lower-priced version of TurboTax Online?

@ppapi

[ppapi]

Thanks so much ! Considering how quick you are, would you be able to help me with this? Thanks again.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-m-on-turbotax-self-employed...

[GeorgeM777]

Entering the type of business will generally cause TurboTax to generate expense categories for business of the type entered.  For example, here are the steps to follow (TurboTax online)  to enter inventory sales if your eBay sales involved the purchase of used items for later re-sale and you performed this work not as a hobby but as a business.   Moreover, if this was not done as business, but involved the sale of personal use property or the sale of investment property, then the analysis would be different.  

The process to enter business income/expenses begins with selecting Wages & Income, then scroll down to Self-Employment, and click Start.  Then follow these steps:

1. Enter a description for your job.  On a test return, we entered eBay sales.
2. At the screen We need a little more info, select Used merchandise sales.  
3. At the screen OK - how does your Used merchandise sales work fit into your big picture, select the appropriate box.  
4. Continue through the application.  
5. At the screen Let's find all the expenses for your Used merchandise sales work...We found 9 expense categories that others in Used merchandise sales often claim!  Click Get started.
6. At the screen, First, select the expenses you know you had, scroll down to Inventory and select it.  Continue through the application. 
7. At the screen Do you have inventory for your Used merchandise sales work?  Select Yes, I have inventory to report.  Choose your method of valuation for your inventory.  
8. At the screen, Let's get the value of inventory for your Used merchandise sales work enter your values.  At the screen, Let's get the cost of goods for your Used merchandise sales work, enter your information. 
9. Review the information on OK, Here is the business gross profit for your Used merchandise sales work.  If you need to make changes, click on the Back button and make the appropriate changes. 

@ppapi

[dmertz]

I don't know why you might think a $20k threshold would be relevant.  If you have more than $433 of net profit from self-employment, you must file Schedules C and SE.  If you have any amount of gross income from self-employment and are otherwise required to file a tax return, your tax return must include Schedule C.

[ppapi]

Thanks for your message, but unfortunately I'm unable to see the inventory choice.

- I first add the new self employed income (add another line of work)
- Then I'm prompted the following:

Advertising

Handmade goods sales

Videography

Package delivery

Nursing

None of these apply.

and I select "non of there apply" because I just resell new items that I buy online (not used, no antiques, no jewelry ... just brand new items like small electronics, for instance).

- Then I select this is a Business and I follow the few prompts
- Then I see the summary info and select "Looks Good"
- Then I enter the info from my 1099-K from eBay (I also tried skipping this for later, same results)
- Next I see this message: "We found 11 expense categories that others in eBay often claim!", but there is no inventory (I see Vehicle, Home Office, Communications, Assets, Supplies, Advertising, Meals (50%), Legal and Professional Fees, Business Travel, Office Expenses, Meals (100%))

What should I do to see the inventory, so I can enter the cost of the purchases items?

I'm very confused because the majority of eBay resellers are just selling new items purchased somewhere else. It is extremely important to enter the items expenses because my actual profit could be just a 10-15% of the gross income mainly due to the cost of the items before selling them.

Why is this so difficult to find? Is there a basic mistake that I'm doing while entering the income?

Thanks a lot.

 

[ppapi]

Hi again, something more about this.

In this article from TurboTax:
https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L...

it is said:

Business tax deductions for eBay sellers

The only tax deductions you can use to reduce your gross eBay sales income are those authorized by the IRS, but you'll have quite a few to choose from. Consider whether you qualify for:

• Costs to purchase or fix up the items sold
  
  

I'm using TurboTax Self-Employed (online) and I'm unable to find the place to enter the "Costs to purchase or fix up the items sold".

Thanks again.

[Becca8]

Yes.  Any Turbo Tax product can be used to file a lower level tax return.

[dmertz]

Ah, I see where the $20,000 threshold came from.  That's just the threshold at which a 2022 Form 1099-K must be issued by a third-party settlement company.  You must still report the income even if it's not reported to you on Form 1099-K.