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New Member
posted May 15, 2021 2:12:03 PM

Why didn't Turbo use the 1040 SE form for self employment tax?

Do I need to do a Business form for my $5000/year parttime income?

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1 Replies
Employee Tax Expert
May 15, 2021 2:39:22 PM

Yes. You have to report all income earned during the year on your tax return. Your side job/part-time income would be reported on a Schedule C (self-employment income). 

 

For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit. 

 

You are able to file a Schedule C without a payer's employer identification number (EIN) and not associate it with a 1099. When you are inputting information for your Schedule C, click on the option Other self-employed income under Common Income. This includes cash and checks received and income not reported on any particular 1099 form. 

 

Please follow these steps in TurboTax to start your Schedule C:

  1. Open your return.
  2. Search schedule c with the magnifying glass tool on the top of the page.
  3. Go to the Jump to schedule c link in the search results. 
  4. Answer Yes to the page titled, Did you have any self-employment income or expenses?
  5. Follow the on-screen instructions.
  6. On the page titled Let's enter the income for your work, click on Other self-employed income under Common Income.
  7. Enter your type of income (cash/check) and the amount.
  8. Follow the on-screen instructions.