Business expense deductions

[Rumpelstilschen]

Hi,

Helping a friend with taxes.  He is filing MFJ.  He has several W-2 jobs while his wife has a 1099 job (a food-delivery gig job, similar to Uber eats).

Question is whether he can take the std deduction while still deducting his wife's business expenses (mileage & mobile phone use).  Or are mileage and phone use considered reimbursements, regardless of the overall deduction status; and where would these by claimed in TurboTax?

Thx in advance! 

[Bsch4477 · Accepted solution]

Using the standard or itemized deduction has nothing to do with deducting expenses from self employment income. Complete Sch C to report both self employment income and expenses. 

[DaveF1006]

She will need to report her income as a business.  As a result, all expenses in regard to that business can be claimed as business expenses including the business use of the car and the cell phone.These expenses claimed have no relationship to the standard deduction reported in the return.

To report the wife's business income and expenses on the 1099:

If using Turbo Tax online, go to:

1. Federal>wages and income
2. Self-Employment>Self-employment income and expenses

If you are using the software, you will need a Turbo Tax Home and Business version and select the business tab at the top of the page and proceed from there.