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Level 2

Question

Self employed deductions with deluxe version

Forum|Forum|5 years ago
April 7, 2021
3 replies
7 views

Is it worth it to upgrade to the self employed version of TurboTax if much husband worked only 2 months in that capacity? He has some deductions he could take but not a lot.

Employee Tax Expert

Employee Tax Expert

Yes. If your husband was self-employed at any time during the year, you need to file a Schedule C. The Schedule C is to report both your self-employment income, as well as your expenses.

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Level 2

But TurboTax is saying that only if I have expenses of at least $850 will it pay for itself. It’s giving it as an option not a requirement. He only has $405 in mileage. I don’t know if it’s worth it to upgrade. The self employment tax is $359. How much will that expense reduce that tax?

Level 15

I am unsure which number you are asking about. Please clarify.

Self-employment income is assessed a self-employment tax. IRS Form 1040 Schedule SE lists tax rates of 12.4% (line 10) and 2.9% (line 11) = 15.3%.

$850 x 15.3% = $130

$405 x 15.3% = $62

Self-employment income is subject to self-employment tax, then to your individual income tax rate.

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