I am a married man living in Michigan who will be filing jointly with my wife. She and I will both have w-2's but I will also have a 1099 from Lyft for the approx. 6 months of driving I did. I was told I pay my taxes from Lyft but was never told, the "when & how". So I put money aside to pay my taxes for that work but still have not because I don't know how to figure out how much I owe. We own a home and have no investments. The total income for both taxed jobs and Lyft is less than 50k.=======the income from Lyft is NOT W2 income it is self employed income so you need to file sch C of 1040 aslongas the amt on Sch C f 1040 line 29 / 31 is $400 or exceeds $400 and also you need to pay your self employment tax aslongas the amt on SCh SE line 2 / 3 is $400 or exceeds $400; Individuals, including sole proprietors generally have to make estimated tax payments if they expect to owe tax of $1k or more when their return is filed.
You don?t have to pay estimated tax for the current year ifYou had no tax liability for the prior year;You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12-month period. so you need to report your income on line 29 / 31 on SCh C of 1040 on your 1040 line 12 and need to report W2 income on form1040 line 7.
Im trying to figure out which tax software I should get to cover all these particulars. I have looked at both H & R Block and Turbo Tax software and see that they both have different software offerings. I'm guessing I need the one that says it covers the Self-Employed but am not sure that fits the legal description of what I was as a Lyft driver. Any guidance would be greatly appreciated. A big thanks in advance========>>Unless you are very familiar with either rof the two tax return software , I guess you need to contact a tax professional, i.e., an IRS Enrolled Agent/a CPA doing taxes, in your local area for professional help. The cost of having a professional prepare your tax return may vary depending on complexity and geography. For the sake of comparison, the IRS estimates that the average taxpayer will spend $270 to complete a federal form 1040; that number jumps to $420 with a business schedule like a Sch E or C If you still wean to use tax software then you may get some help form a vendor;however to file your fed/state return by yourself you need to know fed /state tax rules. Many software packages are user-friendly but filing electronically still requires some basic understanding of computers. there are folks who question why their computers don't work during power outages. If you are comfortable with a computer, there are great software packages like TaxACT, eSmart Tax and TurboTax available that allow you to e-file or print to file. Similarly, you can e-file or print to file your tax return using a tax preparer