Buying oils and kits for testing so I can let people know what works. I wondered where I might deduct those expenses. Also, in order to receive income we must order a certain amount of oils each month, would this expense be deductible?
Yes, the expenses can be deducted. However, how they are deducted will depend on how your business is characterized.Below is information for entering income as self-employment income (Form Schedule C) or hobby income.
In TurboTax Deluxe, Premier, go to Federal Taxes or In Home and Business, go to Business tab- then Continue
- Choose Explore on my own or I'll choose what to work on (if it appears)
- Scroll down to Business Income and Expenses - Click the Start or Update button
- If needed, answer the interview questions regarding your business. After completion, you the TurboTax will move you to the Business Summary screen.
- From here you can edit information for your business that includes the Business Profile, Income, Expenses, etc. Please see the image below.
- To enter Income, click start or update next to Business Income
To enter as Hobby Income, please follow the instructions below:
- Federal Taxes tab
- Wages & Income
- Explore on My Own
- Scroll down to Less Common Income
- Next select, Miscellaneous Income, 1099-A, 1099-C and click Start or Update
- Scroll down to Hobby Income and Expenses
- Click Start or Update
For assistance in determining if you should enter your information as a business or hobby, please see the IRS Publication on Business or Hobby.