Business expenses

[jgjake7]

I have business expenses for my home office, vehicle etc...................do I enter those expenses in "Wages & Income" or in "Deductions and Credits"? I'm using Turbo Tax Deluxe and they ask for the same info in both sections.

[xmasbaby0]

If you are self-employed and are entering business expenses, you need online Premium in order to prepare the Schedule C for those expenses;  online Deluxe cannot prepare a Schedule C.

W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return  to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

[Vanessa A]

Neither.  You will need to use TurboTax Premium or TurboTax Home and Business. 

If you have a business and home office, vehicle expenses you will need to enter it after you enter your business income. To enter your self-employment income select the following:

1. Federal
2. Income and Expenses
3. Show More next to Self-Employment
4. Start next to Self-Employment
5. Yes, to you have any self-employment income or expenses
6. Enter the type of self-employment work you do and you can select that you use your name for your business
7. Click through a few more screens and you will get to a screen that says "Your XX info"
8. Click Looks good
9. Then you will come to a screen that says Let's enter the income for your business.  It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks.  Here is where you will enter the money you receive.
10. If you do not select one, it will not let you enter your income
11. Enter your self-employment income on the next screen
12. Continue and on the next screen click add expenses

* Please note navigation may differ slightly depending on which version of TurboTax you are using*

If you are an employee, then you can NOT claim your vehicle expenses or home office expenses.