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I thought TurboTax was a scam until I spent 9 hours on a $180 freelance form
Honestly I always rolled my eyes at people who paid for tax software. Last March I had one freelance gig, a single 1099 for $180, and I figured I could just do it myself with the free forms. Ngl it took me 9 hours over two weekends and I still got a letter from the IRS in August saying I owed $63. I caved and bought the $89 deluxe version, and it walked me through the home office thing in about 20 minutes. Has anyone else had a tiny side gig turn into a tax mess like this?
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keithbennett11d ago
The $63 letter probably wasn't from the software you used or didn't use, that's likely the self employment tax. When you're a freelancer you pay both halves of social security and medicare, so about 15 percent right off the top, and that hits even on a small gig. Nine hours sounds about right though, the home office part is where most people get lost because the rules are picky about what counts. The $89 is honestly less about the software doing the math and more about it asking the right questions so you don't miss something. Anyway your mileage may vary but that's my read on the letter.
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