How do I write off the price of an app as a deduction?

peter101611 · ‎August 4, 2020

I'm a freelance worker using the MileIQ app to track my miles and that app costs $60 annually. I'm wondering how I would write it as a deduction for when I file my taxes through Turbotax?

MileIQ gives these instructions on their website:

"You can deduct the cost of MileIQ on your taxes by using the Schedule C tax form. You can include it under Part II, where you declare the net profit or loss after business expenses. "

However, I can't find that specific form on Turbotax. Would this be the same as putting the $60 fee under the "Other miscellaneous expenses" and then clarifying it as "MileIQ app fee"?

Kat · ‎August 17, 2020

It's better not to classify any expense as "miscellaneous" if it's avoidable. You should be able to include this qualified business expense under one of the business expense categories. You can include it under Office Expense, for example.

Your Schedule C will be generated by the TurboTax program and be properly filed when you e-file your return.

Please post back if you have questions.

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*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

Carl · ‎August 17, 2020

If it's an annual fee, then I would report it as a rental expense since you do have to pay it on a periodic basis (yearly) to use it. That's what I do with my business mailbox which costs me $120 a year rental fee.

How do I write off the price of an app as a deduction?

Deductions & credits

Deductions & credits