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June 1, 2019
Question

WHERE DO I REPORT MY SELF EMPLOYED INCOME?

  • June 1, 2019
  • 1 reply
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I AM SELF EMPLOYED WHERE DO I REPORT MY GROSS AND NET AND DO I USE THE STANDARD DEDUCTION?

1 reply

RachelW33
June 1, 2019

You should report your Self-Employed Income (and Expenses) on Schedule C.  You enter your "gross" income and then your related expenses.  The difference between the two is your Net Income or Loss.

To do so, follow these steps:

  • Login to your TurboTax Account 
  • Click "Take Me To My Return"
  • Click "Federal" from the left side of your screen
  • Scroll down to "Self Employment" and click "Show More"
  • Click "Start" next to "Income and Expenses" and then click "Yes"
  • From here, TurboTax will walk you through entering your income and expenses from your work

The Standard Deduction is not related to your Schedule C.  

Every Taxpayer has the choice of taking the Standard Deduction or Itemizing Deductions on their return.  You should use the Standard Deduction on your return if you do not have Itemized Deductions (Mortgage Interest, Real Estate Taxes, Charitable Contributions, etc) greater than the Standard Deduction on your Schedule A.

Due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, beginning on your 2018 Tax Return, the Standard Deduction has been increased to the following amounts based on your filing status:

  • Single/Married File Separate- $12,000
  • Head of Household- $18,000
  • Married Filing Joint- $24,000
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