Proper Tax Submission for Self-Employed - Tax Year 2018

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Topic Author
Gipper33
Posts: 2
Joined: Sun Feb 10, 2019 3:36 pm

Proper Tax Submission for Self-Employed - Tax Year 2018

Post by Gipper33 » Sun Feb 10, 2019 3:51 pm

Hello,
I plan to use TurboTax to file soon and wife and I file jointly.

I have ordinary factory income and a W-2.
Wife is self-employed and had one (1) small job for Company X in 2018. Her cost of supplies was $1,500 and the "mark-up" or profit was $300, totaling $1,800 invoice to Company X. The problem is Company X did not pay until 6 months later, in 2019. There were no other expenses for my wife's business in 2018.

How do I file these amounts? I do not want to be taxed zero in 2018 and pay a full tax on $1,800 in 2019.

Thanks in advance for the help.

simas
Posts: 448
Joined: Wed Apr 04, 2007 5:50 pm

Re: Proper Tax Submission for Self-Employed - Tax Year 2018

Post by simas » Sun Feb 10, 2019 4:19 pm

your business is using some form of accounting which is either cash basis or accrual based (i.e. https://bench.co/blog/accounting/cash-v ... ccounting/ for some of the details), which one are you using?

Topic Author
Gipper33
Posts: 2
Joined: Sun Feb 10, 2019 3:36 pm

Re: Proper Tax Submission for Self-Employed - Tax Year 2018

Post by Gipper33 » Sun Feb 10, 2019 4:50 pm

This is a very small, part-time business and not sophisticated. We just file the taxes using Turbo Tax and I would assume cash accounting system.

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