Which version of tax software?
- oldcomputerguy
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Which version of tax software?
To those who use tax software such as TurboTax and such, a question regarding which version I would need.
I retired from my position of 36 years this past January. My replacement came on board about three days before I punched out. Rather than leave them in the situation of him being 7ntrained, I did a deal with my former employers at act as a consultant on an hourly basis, so that the “new guy” could pick y brain along until he got his feet under him
Until my retirement, our taxes were mainly affected by salaries, with holdings, and the odd dividend or capital gain/loss. This year, i’m Wondering how to treat the income from the consulting deal. Do I need the software versions that advertise that they handle “small business” or “self-employment” situations, or is it enough simply to include the consulting income (which is around $800 YTD) in my gross income? Given the small amount of this income, estimated taxes have not been paid on this, so I know that somehow i’ll Need to handle FICA as well as Federal tax on those dollars.
I retired from my position of 36 years this past January. My replacement came on board about three days before I punched out. Rather than leave them in the situation of him being 7ntrained, I did a deal with my former employers at act as a consultant on an hourly basis, so that the “new guy” could pick y brain along until he got his feet under him
Until my retirement, our taxes were mainly affected by salaries, with holdings, and the odd dividend or capital gain/loss. This year, i’m Wondering how to treat the income from the consulting deal. Do I need the software versions that advertise that they handle “small business” or “self-employment” situations, or is it enough simply to include the consulting income (which is around $800 YTD) in my gross income? Given the small amount of this income, estimated taxes have not been paid on this, so I know that somehow i’ll Need to handle FICA as well as Federal tax on those dollars.
There is only one success - to be able to spend your life in your own way. (Christopher Morley)
Re: Which version of tax software?
I use HRBlock Deluxe download. I have had a Schedule C form for consulting for more than 30 years, plus the other usual stuff. I think this software is probably about $20 nowadays and there are many forum posts about it.
You can also probably even use "basic" if you read the tax form instructions and the forms themselves. I highly recommend you read the IRS instructions and publications. See, for example, https://www.irs.gov/pub/irs-pdf/p334.pdf
You can also probably even use "basic" if you read the tax form instructions and the forms themselves. I highly recommend you read the IRS instructions and publications. See, for example, https://www.irs.gov/pub/irs-pdf/p334.pdf
- abuss368
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Re: Which version of tax software?
You would be fine with either H&R Black or Turbo Tax. For a YTD income amount of $800, I would not worry too much. You can report on a Schedule C (along with expenses ordinary and necessary, if any) and pay self employment taxes on the income. The other alternative that I have seen, is simply report on line 21 of Form 21 (and subject to SE Tax). Either way, the risk in minimal.
John C. Bogle: “Simplicity is the master key to financial success."
Re: Which version of tax software?
Risk is minimal? One has to report it on Schedule C and the risk is zero.
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Re: Which version of tax software?
It sounds like you are a 1099 employee? I think thats the form, at least.
*I looked at this type of employment relationship, but never took it. Also, I'm not a tax expert.
*I looked at this type of employment relationship, but never took it. Also, I'm not a tax expert.
- abuss368
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Re: Which version of tax software?
For $800 of income? Yes, I would be inclined to not worry too much.
John C. Bogle: “Simplicity is the master key to financial success."
- abuss368
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Re: Which version of tax software?
Is anyone?
John C. Bogle: “Simplicity is the master key to financial success."
- abuss368
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Re: Which version of tax software?
John C. Bogle: “Simplicity is the master key to financial success."
Re: Which version of tax software?
All versions of Turbo Tax will handle this assuming you get the CD or download file. No guarantees if you use the online version
- abuss368
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Re: Which version of tax software?
I used Turbo Tax for years and recommend the product.
John C. Bogle: “Simplicity is the master key to financial success."