Which version of tax software?

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oldcomputerguy
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Which version of tax software?

Post by oldcomputerguy »

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.
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livesoft
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Re: Which version of tax software?

Post by livesoft »

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
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Re: Which version of tax software?

Post by abuss368 »

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.
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Re: Which version of tax software?

Post by livesoft »

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?

Post by noco-hawkeye »

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. :D
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Re: Which version of tax software?

Post by abuss368 »

livesoft wrote: Sun Dec 10, 2017 9:03 am Risk is minimal? One has to report it on Schedule C and the risk is zero.
For $800 of income? Yes, I would be inclined to not worry too much.
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Re: Which version of tax software?

Post by abuss368 »

noco-hawkeye wrote: Sun Dec 10, 2017 9:04 am Also, I'm not a tax expert. :D
Is anyone? :mrgreen:
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Re: Which version of tax software?

Post by livesoft »

abuss368 wrote: Sun Dec 10, 2017 9:05 amFor $800 of income? Yes, I would be inclined to not worry too much.
I wouldn't worry at all.
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Re: Which version of tax software?

Post by abuss368 »

:sharebeer
livesoft wrote: Sun Dec 10, 2017 9:08 am
abuss368 wrote: Sun Dec 10, 2017 9:05 amFor $800 of income? Yes, I would be inclined to not worry too much.
I wouldn't worry at all.
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Re: Which version of tax software?

Post by pshonore »

All versions of Turbo Tax will handle this assuming you get the CD or download file. No guarantees if you use the online version
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Re: Which version of tax software?

Post by abuss368 »

pshonore wrote: Sun Dec 10, 2017 9:40 am All versions of Turbo Tax will handle this assuming you get the CD or download file. No guarantees if you use the online version
I used Turbo Tax for years and recommend the product.
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