TurboTax has several versions of its software with the option to file online or download. If you are self-employed and file with a Schedule C tax form you’ll want to know which edition of TurboTax is best.
Here’s the best TurboTax discount for the self-employed plus what you should know about Turbo Tax with Schedule C.
We list all the best discounts for TurboTax on this page.
Not sure which TurboTax to use with Schedule C? That depends on whether you file online or not.
TurboTax Version With Schedule C?
TurboTax has recently simplified its editions and now offers fewer versions. First, ask yourself whether you want to file online or download software.
Here’s which version of TurboTax to use with Schedule C:
- Online: If you have a Schedule C, TurboTax recommends filing with their Premium online edition with optional LIVE assistance. Premium
- Download: TurboTax Home & Business is recommended for those who file with Schedule C and prefer download/CD
Tip: Self-Employed and freelancers can’t file with TurboTax Free or Deluxe, as those editions don’t have the features you need including a Schedule C for income and expenses
Where Do I Enter Schedule C on TurboTax?
When you add your self-employment income and expenses in TurboTax Premium, they will generate a Schedule C for you. Here’s how to enter a Schedule C on TurboTax:
- Open your return in TurboTax
- Click Search, then type in “Schedule C”
- Select Jump to Schedule C
- You will be asked, “Did you have any self-employment income or expenses?”
- Answer Yes. If you need to enter additional self-employment work, select Add another line of work
- Follow the instructions to enter your Schedule C
What Are the Biggest Deductions Claimed on Turbo Tax With Schedule C?
When filing a Schedule C form with TurboTax, self-employed individuals can claim various deductions to reduce their taxable income. Here are some common deductions that may be claimed on a Schedule C:
- Business Expenses: This includes costs directly related to running the business, such as office supplies, equipment, advertising and marketing expenses, business insurance, professional fees, and travel expenses.
- Home Office Deduction: If you use a portion of your home exclusively for your business, you may be eligible to claim a deduction for expenses like rent, utilities, and maintenance related to that portion of your home on Schedule C.
- Vehicle Expenses: If you use a vehicle for business purposes, you can deduct expenses such as mileage, fuel, insurance, repairs, and depreciation. On Schedule C with TurboTax, you can choose between the standard mileage rate or actual expenses.
- Supplies and Inventory: This TurboTax Schedule C deduction covers the cost of materials, supplies, and inventory that are necessary for your business operations.
- Depreciation: If you have business assets with a useful life longer than one year (e.g., computers, machinery, vehicles), you can deduct a portion of their cost as depreciation over time.
- Self-Employment Taxes: You can deduct the employer portion of self-employment taxes, which is typically 50% of the total self-employment tax liability.
- Health Insurance Premiums: If you are self-employed and pay for your own health insurance coverage, you may be eligible to deduct those premiums on your Schedule C with TurboTax.
TurboTax Self-Employed Is Now Called, “Premium”
Recently TurboTax combined Premier and Self-Employed into one edition called, Premium. So, if you are a freelancer, self-employed, or file with a Schedule C form for any reason you’ll want to use TurboTax Premium.
Here’s more info about who files their taxes using TurboTax with Schedule C.
Who Files a Schedule C Tax Form?
A Schedule C tax form is filed with TurboTax by self-employed individuals or sole proprietors who operate a business or engage in a trade or profession. It is used to report their income and deductible expenses from their business activities.
The Schedule C form is a part of the individual’s personal tax return (Form 1040) and is used to calculate the net profit or loss of the business, which is then included in the individual’s overall taxable income. (source)
TurboTax makes it easy to file your self-employment taxes by generating a Schedule C for industry-specific tax deductions. You might even qualify for a special discount if you’re a student, member of the US military, or client of various companies and banks like Chase and AMEX.
Good luck using TurboTax with Schedule C and thanks for stopping by Mighty Taxes!