Vehicle and mileage can be added and expenses used for the business portion of your vehicle. You must know the total miles and the business miles for your vehicle regardless of the method you choose.
Sign into your TurboTax Online/Mobile account:
- Select Tax Home (left panel) > Select Income and Expenses > Select Review beside self employment
- Edit beside your business > Add expenses for this work > Scroll to Vehicle Expense and select it
- Continue to enter information about your vehicle.
Note: For vehicles used in your business you can either take mileage or actual expenses. TurboTax will calculate the most beneficial for you. If you do not use the standard mileage rate (SMR) the first year a vehicle is placed in service for business you can never use it for that vehicle.
- If you choose to take mileage, depreciation is taken into consideration in the mileage rate.
- If you choose to take actual expenses, TurboTax will automatically calculate the deduction and include it with the other vehicle expenses. You will have the opportunity to enter the expenses (gas, tires, etc.) and TurboTax will add these along with the depreciation and give you a comparison.
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