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Madison King

First time filling out taxes - confused about a section that might apply to me

So I've been working on my taxes this weekend and I ran into something I've never seen before. This is my third year filing taxes but I'm noticing this weird section that I don't remember from previous years. The help section says something about "Selecting" certain options but I honestly have no idea if this applies to my situation. I've always just used the standard deduction before but my situation changed this year (got a second job as a contractor) so I'm trying to be more thorough. Does anyone know what this selection might be about? Is this something that applies to most people or only in specific situations? I don't want to miss anything important but also don't want to complicate my taxes if I don't need to. Any guidance would be super appreciated. I'm trying to file by myself this year to save money but I'm starting to wonder if that was a mistake!

Julian Paolo

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This sounds like you might be looking at the section that asks whether you want to itemize deductions or take the standard deduction. Since you mentioned getting a contractor job, you'll have some new tax considerations. With contractor income, you'll need to file a Schedule C for self-employment income. This is separate from deciding between standard vs. itemized deductions. The self-employment expenses go on Schedule C, while personal deductions are what you choose between itemizing or taking the standard deduction for. Most people who have contractor income can benefit from tracking business expenses since those reduce your self-employment tax. Things like home office, business mileage, supplies, etc. can be deductible business expenses even if you still take the standard deduction for your personal taxes.

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Madison King

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Thanks for responding! So does that mean I need to fill out this Schedule C thing regardless of whether I take the standard deduction? The part that confused me was something about "selecting if this applies to my situation" but maybe that's about something else entirely. Also, I only made about $3,400 from my contractor work - does that make a difference? My main job is still W-2.

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Julian Paolo

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Yes, you'll need to complete Schedule C regardless of whether you take the standard deduction. These are separate parts of your tax return. Schedule C is for reporting your self-employment income and expenses, while the standard deduction applies to your overall tax return. The amount of $3,400 is definitely enough to require reporting on Schedule C. Any self-employment income over $400 requires you to pay self-employment tax (Medicare and Social Security taxes). The good news is you can deduct business expenses against that $3,400 to reduce your taxable self-employment income.

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Ella Knight

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When I switched from just W-2 to having some 1099 income, I was totally confused by all the different forms and sections too. I ended up using taxr.ai (https://taxr.ai) to help me figure out exactly what applied to my situation. I uploaded my docs and it helped identify which selections actually mattered for my tax situation and explained why. The tool pointed out deductions I would have completely missed with my side gig income. It was especially helpful with explaining the self-employment tax stuff that was completely new to me. Definitely helped me stop overthinking some sections while paying more attention to others that actually mattered for my situation.

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Does it actually explain things in normal human language? I tried using the IRS website to figure stuff out and it's like reading a foreign language sometimes.

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I'm curious - does it work if you have multiple income sources? I have a full-time job, a side business, and some investment income. Most tax software I've tried gets confused with my situation.

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Ella Knight

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It definitely explains everything in normal human language. It breaks down each section and tells you in plain English what it means for your specific situation. The explanations are way clearer than what you get from the IRS website. For multiple income sources, yes it handles that really well. I had W-2 income, 1099 contractor work, and some dividend income. The system organized everything properly and explained which forms applied to each income source. It's especially good at pointing out which deductions apply to which type of income.

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Just wanted to follow up - I tried taxr.ai after seeing your comment and it actually saved me a ton of confusion! I was getting hung up on the exact same selection section as the original poster. The tool identified that I needed to fill out Schedule C for my Etsy shop income, but could still take the standard deduction for everything else. It explained each option in simple terms that actually made sense to me. Honestly such a relief after spending hours being confused. It flagged several deductions related to my side business that I had no idea I could claim. Definitely recommend it to anyone dealing with taxes beyond just a single W-2!

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Jade Santiago

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If you're really stuck and need to talk to an actual person at the IRS (which I eventually had to do last year with a similar issue), I'd recommend using Claimyr (https://claimyr.com). They have this service that gets you connected to an IRS agent without the typical 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first because dealing with the IRS seemed impossible. I tried calling them directly multiple times about my contractor income questions and kept getting disconnected after waiting forever. Claimyr got me through to an actual IRS person in about 10 minutes who answered my specific questions about which sections applied to my situation.

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Caleb Stone

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How does that even work? The IRS phone system is notoriously awful. Are they just calling on your behalf or what?

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Daniel Price

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Yeah right, this sounds like a scam. There's no way to "skip the line" with the IRS unless you're paying for a CPA or tax attorney to call their practitioner hotline.

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Jade Santiago

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They use a system that navigates the IRS phone tree and holds your place in line. When they reach an agent, they connect the call to your phone. You're the one who actually speaks with the IRS agent directly - they just handle the waiting part. No, it's definitely not a scam. They don't ask for any sensitive information and don't talk to the IRS for you. They just handle the wait time part, which is what makes calling the IRS so frustrating. I was super skeptical too but when I actually got connected to an IRS agent who answered my specific questions about contractor income, it was worth it.

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Daniel Price

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I need to apologize for calling Claimyr a scam. I was so frustrated with tax season that I was being cynical about everything. After seeing your response, I decided to try it myself because I had questions about the self-employment expense section. I used their service yesterday and got connected to an IRS agent in about 15 minutes. The agent clarified exactly which sections applied to my side income and which ones I could ignore. Saved me hours of researching and second-guessing myself. I would have spent longer just waiting on hold if I had called directly. Sorry for being so dismissive before!

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Olivia Evans

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Have you checked if you qualify for free filing? If your income is under $73,000 you might qualify for free tax filing software through the IRS Free File program. Those usually have guided questions that help you figure out which sections apply to your situation. With contractor income though, some free options are limited, so make sure the one you choose supports Schedule C (self-employment) filing. I personally like FreeTaxUSA for situations with both W-2 and contractor income.

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Even with free file programs, are you sure they handle 1099 income properly? Last year I tried one and it completely missed some deductions for my side business.

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Olivia Evans

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Most of the free file options do handle 1099 income, but you're right to question how thoroughly they handle deductions. FreeTaxUSA does support Schedule C and self-employment deductions even in their free version, though state filing costs extra. TurboTax's free file option through the IRS program (not their website version) also handles self-employment, but you have to go through the IRS Free File site to get the truly free version. The completeness of their guidance on deductions does vary between programs though, so that's a valid concern.

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Aiden Chen

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When I started getting contractor income, my taxes got way more complicated. That "selecting" section might be about selecting if you had self-employment income. If you're using tax software, just answer honestly about having contractor income and it should guide you through the right sections. The most important thing is keeping good records of any business expenses. Even if you just drive for Uber on weekends or do some freelance work, track your miles, supplies, portion of phone bill, etc. These deductions can significantly reduce what you owe on that income.

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Zoey Bianchi

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Is there an easy way to track all this stuff for next year? I'm just starting some side gig work and tax season already seems daunting.

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just so you know, that contractor income means you'll probably owe more taxes than you're expecting. I made that mistake my first year - didn't set aside enough and got hit with a big bill. selfemployment tax is like 15% on top of regular income tax!! make sure to look into quarterly estimated payments for next year if you're continuing the contractor work. otherwise you might get hit with penalties too. wish someone had told me this my first time!

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Madison King

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Oh no, I had no idea about the extra tax! Do you think I'll owe a lot on $3,400 of contractor income? I'm already getting a small refund from my W-2 job so I was hoping that would cover any extra taxes.

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on $3,400 you're looking at around $480 just for self-employment tax (social security and medicare) before regular income tax. your refund might cover it, but it's definitely eating into what you would have gotten back. for next year, a good rule of thumb is to set aside about 25-30% of any contractor income for taxes. and yeah once you hit around $1000 in expected tax liability from self-employment, you're supposed to make quarterly payments to avoid underpayment penalties. it's a pain but better than a surprise bill!

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