Reporting Business Income & Expenses

[JRWDMW2022]

I started an single-member LLC (disregarded entity) this year.  LLC income and tax liabilities should ultimately flow to my personal return:

1. Does QuickBooks data link/flow to TurboTax?

2. QuickBooks tracks my personal car business mileage, but it does not create an expense line item on the QB profit and loss statement. Does mileage get claimed as an expense in TurboTax based on mileage tracking within QB?

3. Does TurboTax determine FICA payment liabilities at the time of completing the income tax return(s).  Note this year the LLC will not have enough profit to proactively withhold/pay quarterly taxes 

4. How does my LLC business return link to my personal return? Do I need to do this manually when entering data for my personal return?

[Gabriella_EA]

Hello JRWDMW2022!

Thanks for joining us for the event today, and for your questions!

1. Yes, you can link QuickBooks to TurboTax Online so that your income and expenses can flow through into your tax return. You'll set up this link while you're preparing the 2023 return in TurboTax.
2. You'll need to answer some additional vehicle questions in TurboTax to get your mileage deduction to calculate for your tax return, but if you've been tracking it in QuickBooks, you can use that information to assist you with filling out the vehicle section in TurboTax.
3. TurboTax will calculate your self-employment tax (Social Security and Medicare/FICA) liability as it pertains to the LLC as you fill out the self-employment area of TurboTax. This amount will get rolled into your overall refund/balance due on your individual return.
4. As you've mentioned you have a single-member LLC (disregarded entity), you don't have to do anything too unique to link your self-employment work to your individual income tax return. You'll be filling it out as you work on your individual income tax return in TurboTax. Your LLC activity is reported on Schedule C, which is part of your individual income tax return, and not prepared in a separate program.

Congratulations on your new business - we're here to help you succeed!