New Jersey, turbotax Self-Employed, where to add deduction for remaining 50% of meals not on federal return?

[stymie11]

NJ Income Tax – Business Income states "Deduct the remaining 50% of meal and entertainment expenses that were not allowed on the federal return;" Where do I enter this for turbotax self-employed?

[DaveF1006 · Accepted solution]

You do not need to enter this in Turbo Tax Self-Employed.  The program automatically deducts this for you when you enter the information into your federal return.

I determined this by entering $10,000 income and $4000 worth of meal expenses.  The federal return already automatically computed that there was a 50% limitation on meals so it only deducted $2000 for expenses leaving a net profit of $8000 for fereal income tax purposes.

Now when you look at the New Jersey Business income worksheet, it begins with reporting the $8000 of net profit from your federal return and then deducted the remaining $2000 from your State return, leaving $6000 net profit that is reported on your New Jersey sate return.

Make sure when you enter meal expense you enter the full amount of the expense, so that the federal and state return will calculate correctly.