Which turbo tax version

Forum|Forum|4 years ago
March 21, 2022
5 replies
40 views

Which version of turbo tax do I need to use if I have a W2 and a 1099-NEC in 2021?

markcatz

Level 2

Any of the version can handle those forms.

lukelamb84Author

Level 2

I have both a 1099-NEC and a W2 from 2021. The 1099-NEC was only $3,700 only $525 was labor the rest was supplies, equipment, etc.

VolvoGirl

Level 15

Yes you will need to use the Self Employed version to enter the expenses. You have to enter the full amount as income on Schedule C then enter the expenses to give you the Net Profit . You are considered to have your own business for it. YOU are the business. When you fill out schedule C y ou use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.

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. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

VolvoGirl

Level 15

A 1099NEC should be for self employment income. 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. Or use any of the Desktop CD/Download programs.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653