TurboTax Premium features
TurboTax Premium offers excellent tax return preparation for small business owners, with numerous features designed to benefit both personal and business tax preparation. Some features included in TurboTax Premium:
- Asset depreciation
- Unlimited employee tax forms
- Mileage tracking for rideshare drivers
- Bitcoin and cryptocurrency gains and losses
- Employee stock purchase plans
- Rental income
- Donation deductions
- Homeowner deductions
- Education tax credits
- Automatic importing of W-2s
- Mobile app for both iOS and Android devices
- Comprehensive review of return prior to filing
TurboTax Premium includes many stand-out features. Here are some of the more important ones.
Schedule C preparation
As a small business owner, perhaps the most important form you will need to complete is Schedule C: Profit or Loss From Business (Sole Proprietorship). Schedule C is part of your tax return, and reports how much money your small business made or lost throughout the year.
If you receive 1099s for your work, you will need to file a Schedule C. Schedule C is used for any business that is not set up as a separate legal business entity such as a partnership or corporation.
You will need to set up your business in TurboTax Premium. Once this is completed, you can begin to enter 1099 information, as well as any related business expenses, with TurboTax Premium guiding you through the entire interview-style process.
Deductions
If your business is brand new and this is the first year that you'll be filing a combined (personal/business) return, TurboTax Premium will help you take advantage of any deductions available to you, including deductions specific to your industry.
It will search more than 500 tax deductions, including the following:
- Self-employment deductions
- Individual retirement plans (IRAs)
- Business use of home or dwelling
- Deducting automobile expenses
- Depreciation of property and equipment
- Educational expenses
The software floats suggestions based on your job title to speed things up. If you'd like to dive into an expanded list of possible deductions, you have the freedom to do so.
Integration with QuickBooks Self-Employed
TurboTax Premium offers seamless integration with QuickBooks Self-Employed, which tracks invoices, helps separate personal expenses from business expenses, tracks mileage automatically, and helps track any quarterly taxes due.
Any information tracked in QuickBooks Self-Employed can be easily exported into TurboTax Premium, eliminating the need to re-enter the information.
One of the nice features in TurboTax Premium is the ability to prepare an unlimited number of W-2 and 1099 forms if you have employees or use contractors.
Using the Quick Employer Forms option, you can click on the Create W-2s and 1099s link, which will start the creation process. All created forms can be printed as a PDF and mailed to recipients by the deadline.
All created forms are stored for easy future access, though you will have to purchase the most recent version of TurboTax Premium in order to access forms created in a prior year.
Rental management features
For those who own and manage rental properties, TurboTax Premium allows you to easily set up new rentals, report rental income, and even help you determine the fair market value of your properties.
In addition, TurboTax Premium helps simplify the depreciation process on any rentals that you currently own, allowing you to calculate and take a depreciation deduction on your rentals.
