I am changing tax filing from self-employed to permanent employee. How do I do that?

If all your income for 2021 was reported on your W-2, all you have to do is report your W-2 as it appears. No further action needs to be done. 

If you were an independent contractor or self-employed for part of the year and an employee for the other part, then you would have to report both your W-2 earnings and your 1099-NEC earnings.

To report the W-2:

1. Sign in and continue your return
2. Select the magnifying glass and search for W-2
3. Select the Jump to link
4. Select Work on my W-2 and Continue
   • If you've already entered a W-2, select Add another W-2
5. Enter your Employer Identification Number (EIN) from Box b on your W-2
6. If your W-2 can be imported, you'll come to the Great news! We can automatically import your W-2 info screen. Answer the questions to complete your import.

To enter your self-employment earnings, you will need to upgrade to TurboTax Online Self-Employed. You may also enter expenses related to your self-employment work here. No expenses that you incurred as a W-2 employee would be deductible:

1. Type Schedule C in the Search box
2. Select the Jump to link
3. Answer Yes to Did you have any self-employment income or expenses? and answer the questions. Make sure to indicate that you ended your self-employment work in 2021.
4. When you get the What kind of expenses did you have for your business? screen. Select your expenses, then Continue
5. Select Start next to an expense type that you had
6. Enter your expense description and amount, and answer any other questions we ask
7. If you had more than one expense for a type, select Add another group to include them all
8. If you have additional expenses of other types, repeat steps 3 through 5 to add more

While no documentation is required to enter any expenses in the TurboTax system, the IRS requires you to maintain your records for at least three years. The IRS website states the types of records that should be kept.