in [Event] MetLife + TurboTax | Ask the Experts About Your Taxes
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It depends on where you are seeing this?
If you are a sole proprietor, when you enter your income you will enter the total amount of money the business took in for the year. After you do that, you will continue through and enter your expenses. This will all be reported on Schedule C. Your income will be the income the business took in minus the expenses. If you are taking money out of the business to pay yourself, that is not what is considered your wages. As a self-employed person, unless you are an S-Corp or an LLC that chose to be treated as an S-Corp, you do not have wages in the same sense that you would as an employee. Your wages are the profit regardless of if you spend it or leave it in the bank to be re-invested.
To enter your self-employment income select the following:
* Please note navigation may differ slightly depending on which version of TurboTax you are using*
This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
What Is a Schedule C IRS form?
If you are being treated as an S-Corp, then you would need to use TurboTax Business (NOT home and Business) to file an 1120S, on here you would enter your total income and expenses for the business and then issue yourself a W-2 for your wages.
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