Quote:
Originally Posted by BearMountainBooks
I thought so too, but when entering in Turbotax, it doesn't appear to be deducting any expenses from the SS owed. The half of SS payment on the 140 seems to work out correctly, but no expenses against SS. I have looked at it every possible way I can think of. I suppose I could take it to a tax person (I did that one year. The entire thing was done wrong and I had to do it again myself.)
Taxes are so dang complicated.
But thanks for the input. I hope I can figure out what I'm doing wrong, assuming I'm doing something wrong. But the biggest expenses (printing galley proofs and mailing them to editors--which is a very large part of expenses, doesn't seem to deduct at all. I may be entering it wrong, of course because it's nearly impossible to figure out where everything goes.)
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Are you filing Schedule C? There's a place at the end to list expenses that are hard to classify. I've done this in Turbo Tax for years, and if your profit from your sole proprietorship is under about $300 you pay no self-employment tax. Above that you pay the 12%. You use your profit or loss TOTAL from Schedule C in Schedule SE, which includes your (subtracted) expenses. The expenses for postage and office supplies go on line 18 in Schedule C.