W2 and contractor

[bust]

Hello:

I worked about equal amounts in 2022 as a contractor and on a W2 for a company. While working as an independent contractor I made direct tax payments to state and fed to hopefully avoid being fined. Now I'm wondering how to file my taxes with the payments that I made to the IRS. I'm currently not working as a contractor, nor do I expect to in the future. For the past five years I used TurboTax and was always on a W-2. Can I go about filing the same way as I've done in the past and Turbo will know how to handle my situation with the online tax payments that I made in 2022 as an independent contractor?

[DavidD66]

You can file the same way you have done in the past; however, you will have to complete and file Schedule C Profit or Loss From Business in order to report your earnings and expenses as a contractor.  You will need to use TurboTax Self-Employed (if you are using the online version).  As for the payments that you made to the IRS, those are estimated payments.  As you go through the interview in TurboTax you will be asked if you made estimated payments.  Answer Yes, and the program will walk you through entering your payments.

[bust]

Hi David:

Thanks for the quick response. Okay, I need to use the self-employed version. With the self-employed version would I be able to do my W-2 stuff as well? I also received some income from unemployment benefits and have some investment losses including carryover loss from previous years.  Which version would I use for those items. Obviously, I'd prefer to only use one version or I'm not sure how ideal Turbo Tax is for my situation. Possibly I need to get an agent to do my taxes. Would that be possible?

Thanks again,

Bust

[AnnetteB6 · Accepted solution]

Yes, TurboTax Online Self-Employed or any of the CD/downloaded versions of TurboTax can handle both your independent contractor income along with your W-2 and unemployment income.  All of this income is reported on the same tax return, so it will all be entered in the same version of TurboTax one time.

The only time you would need multiple versions of TurboTax to complete your return(s) would be if you had a partnership, corporation, or S-corp in addition to your personal income.  Those entities must file their own return and provide K-1s to be reported on a personal tax return.  

Working as an independent contractor is generally a sole proprietorship and is handled along with the rest of your personal tax return by reporting that income on Schedule C.

If you get stuck as you are going through your return using the online program, you will see some options to get in touch with an expert and you can even decide to let a TurboTax expert handle your tax return for you if you choose.

@bust