Drive for a ride-sharing company or sell homemade trinkets on Etsy as a way of pocketing a little extra cash? If you are side hustling on an ongoing basis and your goal is to make a profit you are considered self-employed, so congratulations on being your own boss!
As you may have already discovered, having your own side-hustle carries has some new tax implications — but have no fear! Our TurboTax Live CPAs and Enrolled Agents are here to share some tips to keep in mind in order to master your solopreneur-related taxes.
Getting Ready to File
“Keep good records! You’d be surprised at what you spend and what is tax deductible. You can use QuickBooks Self-Employed along the way so you don’t have to sort through a shoebox of receipts and your information easily exports to your TurboTax Self-Employed Tax Return.” – Ernie Sadashige, CPA for 13 years
“Congratulations, you’re self-employed! It’s most important to remember to separate your personal from your business expenses.” – Claudell Bradby, CPA for 19 years
“My suggestion is to keep good records, as it is way easier than having to recall numbers at the end of the year. Also, if you need assistance with staying on top of all of your expenses and staying organized, TurboTax Self-Employed is the product for you!” – Miguel Burgos, CPA for 6 years
“Documentation is very, very important, so make sure to keep your receipts. Try to use debit or credit cards instead of paying for everything with cash. Additionally, document mileage well so that when it comes time to file, you can easily complete your tax return and get all the tax deductions you’re entitled to receive.” – Dave Shultz, CPA for 26 years
“You never know when it comes to qualified business expenses and tax deductions. A self-employed truck driver once asked me if he could claim his dog and I said yes — as long as the dog is in the truck for business security reasons. If you use TurboTax Self-Employed, it can easily find industry-specific tax deductions related to your business and save you money on your taxes.” – Miguel Burgos, CPA for 6 years
“If you drive for a ride-share company, my number one tip is to keep track of your expenses! You’d be surprised at all of the things you’re spending on (like air fresheners, gum and water bottles for riders) that you can deduct. QuickBooks Self-Employed is great and your information easily exports directly to your TurboTax Self-Employed tax return, eliminating data entry.” – Ernie Sadashige, CPA for 13 years
Even if you still have questions, you don’t need to worry about knowing these tax laws. TurboTax Self-Employed will ask you simple questions about you and your business and give you the tax deductions and credits your eligible for based on your entries.
TurboTax Self-Employed will also find industry-specific tax deductions related to your business saving you money on your taxes. If you have questions, you can connect live via one-way video to a TurboTax Live Self-Employed CPA or Enrolled Agent with an average 15 years-experience to get your tax questions answered.
A TurboTax Live Self-Employed CPA or Enrolled Agent can also review, sign and file your tax return and they are available to speak with you in either English and Spanish. TurboTax also doesn’t close on April 15 — TurboTax Live Self-Employed allows you to get answers to your questions year-round!
With TurboTax Self-Employed, you get a year of QuickBooks Self-Employed free. QuickBooks Self-Employed allows you to track your income, expenses, mileage, capture your receipts and separate your business and personal expenses year-round. You can then easily export your information to your TurboTax Self-Employed tax return.