How to correctly file taxes with both an EIN and SSN for freelance consulting work?

12 Thank you so much for explaining! So just to make sure I understand - I'll still file jointly with my husband using Form 1040 with our SSNs, and then attach a Schedule C for my freelance work where I'll use my EIN? And this all goes together as one tax return? Also, is there any benefit to having the EIN versus just using my SSN for the freelance work?

8 Yes, you've got it exactly right! You'll file one joint Form 1040 with your husband using your SSNs, and you'll include Schedule C for your freelance business where you'll use your EIN. It all goes together as one complete tax return. As for benefits of an EIN versus using your SSN for freelance work - having an EIN provides some identity protection since you won't have to share your SSN with clients. It also looks more professional on invoices and forms. If you ever decide to hire employees or open a business bank account, you'll need that EIN. There's no downside to having obtained it, so I'd recommend continuing to use it.

14 Did it help with figuring out quarterly estimated tax payments too? That's what I'm stuck on - not sure how to calculate those with both W-2 and 1099 income under an EIN.

19 I'm a bit skeptical about tax tools for mixed income situations. Did it actually explain the process or just do the calculations? I need to understand what I'm filing, not just have someone do it for me.

5 Yes, it actually helped me set up quarterly estimated payments! The system analyzed my W-2 withholding and calculated what additional quarterly payments I needed to make for my freelance income to avoid underpayment penalties. It even sent me reminders when payments were due. For those wanting to understand the process, the tool doesn't just do calculations - it actually explains each step and why certain things apply to your situation. It showed me exactly why I needed a Schedule C with my EIN and how that connects to my personal return with my SSN. I learned a lot more from it than when I tried reading IRS publications.

16 How does that even work? Seems fishy that some service could somehow get priority in the IRS phone system when everyone else waits for hours.

11 Does it cost money? Seems kind of ridiculous that we have to pay a third party just to talk to the tax agency we fund with our taxes...

7 It's not about getting priority - they use technology to wait in the phone queue for you. Instead of you sitting there listening to hold music for hours, their system does it and calls you when an agent comes on the line. There's no special access or line-cutting happening. No, it's not free - but I personally found it worth every penny. I agree it's frustrating that our tax system is so complicated we need help just to talk to the IRS. But in my case, getting clear answers about using my EIN properly potentially saved me from making costly mistakes. The agent walked me through exactly how Schedule C works with a joint return and confirmed I was doing everything correctly.

21 Do you need separate accounts if you have an EIN? I thought you could just track expenses carefully without needing separate business accounts?

3 You don't absolutely need separate accounts, but it makes tracking so much easier. When all your business expenses are in one place, you can quickly generate reports for tax time without having to sort through personal transactions. It also gives you more credibility if you ever get audited. When the IRS can see clear separation between personal and business finances, it strengthens your case for business deductions. I learned this the hard way after spending days sorting through mixed personal/business statements my first year freelancing.

9 You definitely need TurboTax Self-Employed for this. The Deluxe version won't include Schedule C which is what you'll need for reporting your EIN-based freelance income. I tried using Deluxe last year with a similar situation and had to upgrade halfway through.

That's a great point about the business codes! I hadn't even thought about that. Do you know where I can find the list of these codes? I'm doing tech consulting so I want to make sure I pick the right one. Also, thanks for confirming that my husband doesn't need to worry about the EIN - I was wondering if it would somehow affect his part of our joint return. It's reassuring to know the business income just flows through to the main form like any other income source.

You can find the business activity codes in the instructions for Schedule C - there's a comprehensive list there. For tech consulting, you'll probably want to look at codes in the 541500 range (Computer Systems Design and Related Services) or 541600 range (Management, Scientific, and Technical Consulting Services), depending on exactly what type of consulting you do. The IRS also has the codes available on their website if you search for "Schedule C business activity codes." Just pick the one that best describes your primary consulting activity. And yes, your husband's income and deductions on your joint return are completely separate from your EIN business activities - the EIN only appears on your Schedule C section.