As
a business owner or self-employed individual, you can enter either the
standard mileage rate or the actual cost method, which tracks what you paid
for gas and maintenance.
To
use the standard mileage rate, you must keep a log of each trip with miles driven
during the first year your vehicle is used for business. After that, you can
either go with standard mileage or actual cost (unless you lease, in which case
you must stick with standard mileage for the duration of the lease).
To
enter vehicle related expenses:
- In the Self-Employed
Turbo Tax version with the Federal Taxes tab at the top
- Click on the Federal
Taxes tab
- Click on Income
and Expenses
- You may see a
prompt for Self-Employment, but if not
- Click on Check
for More Income and See All Income
- Scroll down to the
Self-Employment section with the blue person icon
- Click on Show
More
- And Start or
Edit.
- Scroll down past
Expenses line and click on the blue
- Add More Expenses
for this work button
- Click on the
circle for Vehicle Expenses
- Click on
Continue at the bottom
The
vehicle expenses have a series of questions and you can choose to use either a
cost per mile or use the actual costs for the vehicle (including gas) and the
next page has tolls and parking. There are more expense categories on the Add
Expenses page if you click on the blue triangle next to Less
Common Expenses for legal and professional fees, commissions
and much more.
- In
the Self-Employed Turbo Tax version with the Business tab at the top
- Click on the Business
tab
- Then Continue
and I'll choose what to work on
-
Update your Profit or
Loss from a Business
- Click on the Edit
button for the name of your business
- Under Business
Expenses, with the blue bar graph icon,
- click on Update
or Start for Business Vehicle Expense
click here for more tax tips for drivers
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