Does TurboTax Freedom edition support Schedule C?

[Zeppo103]

Hello,

I started working as a freelancer in 2019 (though I didn't work during the first two months of that year).  I don't make much, so I qualify for the Freedom Edition of Turbotax.  I don't mean the Free edition, which is not part of the IRS's  Free File program, but the Freedom, which is.  I chose "I don't know" for the edition because it only showed the "free" one.

My understanding is that I may need a Schedule C,or C-EZ (I don't have 1099s since I do tiny projects for lots of random clients and mostly get paid in cash). As I've filled out my info into the TurboTax guided form, there's been no mention of Schedule C. I've reached the end - if I click on the "finished" button, will the final documents automatically include a Schedule C because I'm self-employed? Or is it something I somehow have to enter on my own? I'm confused and scared I won't get a Schedule C.

Thanks so much!

[VolvoGirl]

Yes the Free File website at IRS has schedule C.

The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Free File website  you just need to meet one of these 3 things

AGI $36,000 or less

Active duty military with AGI of $69,000 or less

OR qualify for EIC (earned income credit.)

In order to use the Free File program, you have to start it at a special website.  Click on Sign in at the top right.  It may let you continue your return so you don't have to start over.

https://freefile.intuit.com/

How to switch to the Free File website

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/01/...

[VolvoGirl]

Yes to file Schedule C you need to fill it out.  Here's How to enter income from Self Employment.  This is for Turbo Tax but I think the Free File website works the same way.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Here's some general info

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

FOR 2019

Here's a blank schedule C to see how it works

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

For 2019 Schedule C Net Profit or Loss goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit 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.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[ben vanbergen]

No it does not , it asks you to upgrade to a $70 expense when you want to input Schedule C income/expenses.  So if you advertise that you do, fix it. 

[MaxwellSmart]

Free File absolutely does support Schedule C.   In order to activate it you have to click "yes i want to itemize" when you see that question.    IN FACT for self employed folks you need to click that same box EVEN IF you are not itemizing, otherwise it will call it "other income" and not tax it correctly.   You want the type of income to say the name you give it and not say "other."    Doing a 1099 with a schedule C is tricky in Free File.   Just take your time with it, don't be afraid to clear and start over and you'll get it.   it is definitely "buggy."   Turbo Tax would rather you go over to the paid side and pay for the Self Employment version.

[MaryM428]

In Free File after you add income you will see a screen with add expenses.  Free File can handle self-employment tax returns.  You may be experiencing browser problems.  Use the Chrome browser and clear all browser data, then sign into TurboTax again.

Free File Program