Don't need to fill out what part of Turbo Tax? You need to fill out Schedule C and enter your income and expenses for Turbo Tax to calculate your gain or loss. You only pay self employment tax on a Net Profit of $400 or more. And a loss will be deducted from your other income.
But Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one.The area of your home office must be used regularly and exclusively for business to deduct it.
FYI -You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.So you get social security credit for it when you retire.
February 17, 20225:48 PM
