topic Deductions for event costs in Get your taxes done using TurboTax

Deductions for event costs

Just_Christina — Wed, 19 Mar 2025 15:45:07 GMT

I am self-employed and received 40K in grant funds (taxable, received a 1099-NEC) to host community wellness events. This substantially increased my income but 30K of that grant was spent on event costs (catering, materials, speaker fees). I have 2 related questions:

1 - where specifically should I deduct those expenses ("other miscellaneous business expenses" and just list "Seminar costs"??)

2 - will this raise any kind of red flag that my expenses have increased so dramatically (for example, I might have had only $400 in advertising in past years but now have $4000 due to these events). The increase in expenses *is* proportionate to the increase in income.

Re: Deductions for event costs

IsabellaG — Wed, 19 Mar 2025 19:05:54 GMT

You can deduct those expenses as "other miscellaneous expenses" and in TurboTax you will be able to describe the expenses individually, as you have described them here ( catering, materials, speaker fees, etc.). I would recommend that approach rather than reporting one large sum.

Be sure that you understand the rules for issuing 1099's to the speakers, if you paid any one individual $600 or more for the year.

The fact that your expenses have increased proportionate to your income will not raise any particular red flag. Returns where the expenses are disproportionate to income are more likely to be questioned. And in any case, you will have documentation to support the expenses that you claim.