W2 and 1099-misc which TurboTax options should i select, Deluxe, Premier, or Home and self employee?

[Asta]

I am expecting to receive W2 and 1099-misc form in 2021. I also expect to make between 5k to 8k from my side job(delivery job). Which option should i select when filing my tax return? I looked up online and found that TurboTax Deluxe and Premier editions support 1099-MISC income but the limited expenses only up to 100? i'm sure i will need more tax deduction.  If I select self employed edition how much am i expecting to pay for the service and am i able to also file my W2 with TurboTax self employed edition? 

[VolvoGirl]

Well for 2019 returns now you can see the prices for Online here  https://turbotax.intuit.com/personal-taxes/online/ 

The prices are usually lower at the beginning (in Nov) but go up on March 1.  Yes, 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.

How to enter income from Self Employment

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

Or you can buy an of the Desktop CD/Download programs.  All the Desktop programs have the same forms. You just get more help and guidance in the higher versions. 

https://turbotax.intuit.com/personal-taxes/cd-download/ 

[VolvoGirl]

Yes you can enter your W2 income into all the personal versions.  You only file 1 tax return for all your income.  Here is some general info on 1099Misc self employment income.

You will need to keep good records.  You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small.  You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

FOR 2019

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.

For 2019 Schedule C Net Profit or Loss now goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

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

[Asta]

The prices are usually lower at the beginning (in Nov) but go up on March 1.  Yes, 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. 

My Replay: When i upgrade to the Self Employed version, am i able to file my W2 along with the 1099-Misc or i need to file my tax twice, which with my W2 i will use deluxe, premier or free version and for my 1099-Misc, i need to use self employed version. 

Is self employed version everything? i want to find a version that include everything  i have here: W2, CD interest, self employed(side job), student loan, stock dividend and HSA.  

Thank you for your help!!!! I love you! 

[VolvoGirl]

Yes you can enter everything into the Self Employed version.  It is the highest version and has everything the lower versions have.  You have to enter all your income into the same return.  You file one 1040 tax return for all your income, etc.

Just work in the Self Employed version and post any questions you have.  

Enter a W2  under

Federal Taxes on the left side

Wages & Income  

Then Wages and Salaries- Click the Start or Update button

How to enter income from Self Employment or 1099Misc 

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

[Asta]

One last question.  Self Employed version start with 120 dollars. I reside in New York and I work in another state. will the price go up? am i expecting to pay 200$- 300$ to get my file done. 

Thank you so much!!!

[VolvoGirl]

Yes.  A state return is $50 each.

How to see your fees

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/0...

For help with fees

https://ttlc.intuit.com/community/charges-and-fees/help/what-can-i-do-to-reduce-my-fees/00/26051

[VolvoGirl]

BUT If you don't want to upgrade to the Online Self Employed version you can buy a lower Desktop version.  All the Desktop programs have the same forms.  You just get more help and guidance in the higher versions.  You will need a full Windows or Mac computer to install it on.  And the Desktop programs have more features and advantages over the online versions.

You can move your Online file to the Desktop program and continue without paying for Online or needing to reenter your info.

To continue in the desktop version see this…….

https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-th...

After you get the program installed the first thing to do before you open your tax return .tax file is to update the program and install any state programs you had. Then open your file. So you first might need to start a fake return to be able to download the state program (go to FILE - NEW).

You can buy the CD/Download here,

https://turbotax.intuit.com/personal-taxes/cd-download

[Asta]

you're the god! thank you so much for your help and most importantly your time. Gods bless you! 

[Asta]

What is the difference btw CD/Download and online version. I was always assuming the CD version is like an old traditional way to file your tax.  In other word, once i am done with my tax, i need to print out the files and send it to the IRS. However, based on what you says, it sounds like the only different between the two is more support, no? When i filed my tax this year, the questions were really straight forward. 

[VolvoGirl]

You can still efile from the Desktop CD/Download program .

DESKTOP

Desktop you buy and install the program which can do unlimited returns.  The returns are only saved on your computer and can not be accessed from anywhere else.  And not saved at Turbo Tax.  So Be sure to save Frequently and make backups.  You get 5 federal efile for free.  In Deluxe and above you get 1 state PROGRAM download to prepare unlimited state returns (in that state).  Each state return including the first one is 19.99/24.99 to efile or you can print and mail the state for free.

Desktop also has many other features and advantages over the Online version.  You can do more than 1 return.  You can see and enter into the actual forms.  And you can use a lower version because all the Desktop versions have ALL the same forms.  You just get more help in the higher versions.  In online you have to upgrade to enter certain kinds of income.  Like Premier for investments.

You can buy the Desktop CD/Download program now here,

https://turbotax.intuit.com/personal-taxes/cd-download/

ONLINE

The Online web version is different than the Desktop CD/Download program you install.  The pricing structure is totally different.  

Online you pay to prepare the return whether you efile or print and mail.  Efiling is free and included in all versions.  And state is a separate additional charge in Deluxe and above.   Oh and Online is only good for 1 Account and 1 return.

In the Online versions you have to use a higher versions to enter certain types of income like investments and self employment.  Online you can’t see the actual forms like the Desktop program until you pay.

You can access an online return from any computer and device.  Your return is stored at Turbo Tax.  So be sure to download the pdf and .tax files to your computer when you are done or you may not be able to access it when you need a copy.  Or if you ever need to amend.

[Micco]

Hi, you are on the right track! The desktop version "Home & Business, personal & Self-employed."  will do everything you are looking for. You can purchase on line and download or load the CD. For 2019, I paid around $76.00 for it. Easy to correct, will process W2, 1099 and take you through your sole proprietor business. Efiles federal no extra charge. Allows you one state tax file without charge. If I want to efile my state return, it costs a little, ($39 ish) I have been using it for my partnerships for 10 years. Best of Luck.

Michelle

[Asta]

Thank you so so so so so so much! I wish i can offer you a lunch or dinner in the return of helping me out with my questions. 

For your information: I currently doing doordashas as a side job so before i actually commit to it, i want to make sure i don't mess up when i file my tax at the end of the year. I couldn't sleep a few nights worrying about what to do with my tax next year. I dont want to hire pro because it will cost me like 500$ and i'm making really little with doordash. 

I will definitely use desktop over the online version because it sounds like it will save me over 100 dollars. 

Thank you so much again!