My ESl company told me that I have to do my own taxes because we are considered independent contractors. I receive all money through PayPal what should I do?

If you have expenses associated with that independent contractor income and you want to do your taxes online, then you're going to have to upgrade to the TurboTax Self-Employment product as that's the only online version that supports Schedule C where you report your income and associated expenses.  If you don't have any business expenses to deduct then TurboTax Deluxe is capable of preparing a Schedule C-EZ where you'll report the income deposited to your PayPal account.  If you earned more than $600 from this company then they should send you a Form 1099-MISC with the same dollar amount and you can simply enter the 1099-MISC amount.

As an independent contractor you are considered to be running a "business", (even if you don't think about it that way), and Schedule C is where you report that activity.  Your business income will be taxed at ordinary income tax rates and you'll also be subject to Self-Employment taxes (Social Security and Medicare) at roughly a 15% rate.  TurboTax will calculate the SE tax and include it on your Form 1040.

Start the "Business Income and Expense" interview to fill out Schedule C. 

Tom Young