Can I deduct loan payments for an EIDL loan?

The interest that you pay is typically a tax deduction for your business.

To report it in TurboTax:

 

1. Open you return, select Federal, then  Wages & Income. Select the Business Tab in TurboTax Home and Business
2. Scroll down and find Self-employment income and expenses, select Start or review
3. Select Review next to the self employment income.
4. Click Add expenses for this work at the bottom of the expense summary.
5. Click on Less common expenses at the bottom of the list.
6. Check the box next to Credit card, loan, and other interest, click Continue. 
7. Click Start to the right of Credit card, loan, and other interest.
8. Enter "EIDL interest" as the description and the amount of interest that you paid.

If using TurboTax Home and Business:

1. Select the Business Tab 
2. Go to Business Income an Expenses.
3. Select to Edit your Business and Scroll down Business Expenses then Interest Payment
4. On the following screen select Credit card, loan, and other interest.