You claim vehicle deductions under the Vehicle Expenses section on your Schedule C (self-employment income and expenses). Enter all of your vehicle information on your Schedule C. When claiming vehicle deductions, you generally have a choice between using the standard mileage deduction OR you can use actual expenses. To claim repair expense for your business, you will have to opt for using the actual expenses method. However, you should enter all of the information and TurboTax will let you know what your deduction will be using standard or actual.
To enter your vehicle mileage and actual expenses (you will enter mileage first then actual expenses at the end of that section)
- Type Schedule C in the Search box.
- Select the Jump to link.
- If this is your first time working in this section: You’ll be asked some questions about your self-employment work and income and then have a chance to enter your expenses.
- If you have already entered some information about your self-employment work:
- Select Edit next to your business and confirm your general business info if asked.
- Select Add expenses for this work.
- Select Vehicle expense.
- We will ask you some additional questions about your vehicle and related expenses.
- TurboTax will calculate your deduction
- When asked if you would like to compare the actual expenses deduction - answer YES
If you use TurboTax CD/Download Home Business follow these instructions to enter your expenses. See the links below for more information regarding vehicle deductions.
Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction
Driving Down Taxes: Auto-Related Tax Deductions
