How do I know which TurboTax to use?

Tips for Choosing a Version of TurboTax

If you are self-employed and make less than $39,000 a year, absolutely use TurboTax Freedom Edition. If you are self-employed, do not use any online version of TurboTax cheaper than Home & Business.

What is the difference between TurboTax basic and deluxe?

Live Basic Federal: $79 (state included). This is essentially the free version but with access to a tax pro, advice and a final review. Deluxe Federal: $39 (with Live: $119) + $39 per state filed (with Live: $49). Lets you itemize and claim several tax deductions and credits.

Are there different types of TurboTax?

TurboTax Help and Support: Access to a TurboTax product specialist is included with TurboTax Deluxe, Premier, Self-Employed, TurboTax Live and TurboTax Live Full Service; not included with Free Edition (but is available as an upgrade).

What’s the difference between TurboTax and TurboTax Deluxe?

The deluxe version is only about support. Their free version includes much of what is included in TurboTax Premier (investments, rental income) and Home & Business (1099 income and expenses).

Which version of TurboTax do I need for capital gains?

You’ll use TurboTax Premier to report capital gains and losses as described above.

Can TurboTax Deluxe do stocks?

All desktop CD/download products (including Deluxe) can handle sales of stocks, bonds, mutual funds, etc, and can import from brokerages, etc.

Which TurboTax include Schedule C?

You can file a Schedule C with all the TurboTax CD/Download products including Basic, Deluxe, Premier and Home & Business. We recommend the Home & Business CD/Download if you: Started a business in 2016; Need to create W-2 and 1099 forms for employees and contractors; or.

Does TurboTax Deluxe 2020 include Schedule C?

Every one of the TurboTax desktop CD/Desktop editions all contain the same forms and schedules, so the Deluxe edition also supports Schedule C.

Why do I have to upgrade TurboTax?

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we’ll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return.

Why is TurboTax making me fill out Schedule C?

We’ll automatically complete Schedule C when you set up your self-employment work in TurboTax or when you enter what the IRS considers self-employment income, which is usually reported on Form 1099-NEC or 1099-MISC.

Who files a Schedule C?

Schedule C is the tax form filed by most sole proprietors. As you can tell from its title, “Profit or Loss From Business,” it´s used to report both income and losses. Many times, Schedule C filers are self-employed taxpayers who are just getting their businesses started.

What is a Schedule C worksheet?

Use Schedule C (Form 1040 or 1040-SR) to report income or (loss) from a business you operated or a profession you practiced as a sole proprietor. See the Instructions for Recipient (back of Copy B of Form 1099-MISC) for the types of income to report on Schedule C. …

Do I need to file a Schedule C?

Introduction. If you are self-employed, it’s likely you need to fill out an IRS Schedule C to report how much money you made or lost in your business. This form, headlined “Profit or Loss From Business (Sole Proprietorship),” must be completed and included with your income tax return if you had self-employment income.

Is Schedule C the same as 1099?

IRS Schedule C is a tax form for reporting profit or loss from a business. … A Schedule C is not the same as a 1099 form, though you may need IRS Form 1099 (a 1099-NEC in particular) in order to fill out a Schedule C.

Is Schedule C and 1040 the same?

Schedule C is part of Form 1040. It’s used by sole proprietors to let the IRS know how much their business made or lost in the last year. The IRS uses the information in Schedule C to calculate how much taxable profit you made—and assess any taxes or refunds owing.

What is the minimum income to file Schedule C?

There is no minimum income to file the Schedule C. All income and expenses must be reported on the Schedule C, regardless of how little you earned. If you meet certain criteria — detailed below — you may be able to file the Schedule C EZ instead. There is a minimum threshold of $400 for paying self-employment tax.

What happens if I don’t file a Schedule C?

If you fail to file a tax return at all, you run the risk of the IRS charging you with tax evasion. It’s a federal crime not to file a tax return for a year in which you owe the IRS, and the penalties can be serious — up to $25,000 for each year you fail to do so. A tax evasion charge also involves jail time.

What if you don’t have a Schedule C?

During a year with no income and no expenses, you generally don’t need to file Schedule C. … If you have no income but did have expenses, you may be eligible to receive a tax refund or credit by filing. The bottom line is: No income, no expenses = Filing Schedule C generally is not necessary.