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Tax Year Prior to 2020: How to enter income from a sole proprietorship?

When I enter it as additional income, it also adds in my W2 earnings. So now my W2 earnings are listed twice ( on two separate lines), Is tax being calculated on this amount twice?

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Tax Year Prior to 2020: How to enter income from a sole proprietorship?

It sounds like you entered it in the wrong area.  You will need to use the TurboTax Self-Employed version.  You will file a Schedule C.  The Schedule C will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to the right area:  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area.

When you set up your business, you can use your own name, address, and social security number (if you don't have a business name or EIN). Then, when done with the Business Profile:

  • go to Business Income and Expenses
  • select Edit next to your business (if it is there)
  • scroll to Business Income 
  • on the next screen, you will see a place to enter a Form 1099-MISC (if you didn’t receive one, you can Skip past that)
  • then, on the next screen, you will see General Income (for income received that is not on a 1099-MISC form)
  • enter a description for the income (ex. Services, or Consulting, Customer Sales) and the amount

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .


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