His business expenses are deducted from his business income on Schedule C. They are not an itemized deduction on Schedule A. Those are two separate things. You can deduct business expenses on Schedule C AND still itemize your non-business deductible expenses on Schedule A, or use your standard deduction, whichever provides the most benefit for you. Once you've entered all your numbers into TurboTax, the program will tell you which of those two options is best. To deduct business expenses, you need either TT Self-employed online OR TT Home & Business CD/Download.
It's not as complicated as it sounds; your spouse just has to get used to keeping track of his SE income and expenses. The TurboTax program will walk you through Schedule C when you do your return.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
