I need help picking the right Turbotax product for my needs. Car courier W2 and disability payments for a few months, hoping for car expenses deductions. Which Turbotax?

[DDollar · Accepted solution]

If you have self-employment income (Form 1099-MISC), and want to deduct automobile expenses related to that, then you will need to use TurboTax Self-Employed.  If you only have W-2 income and disability payments, then I would suggest using Deluxe.  If all your income is as employee (W-2), then you will not be able to deduct any of your automobile expenses.  Deductions for un-reimbursed business expenses (such as mileage) were suspended from 2018 through 2025 by the Tax Cuts and Jobs Act of 2017 (TCJA).   Keep in mind, you can always upgrade from within your return, but it's a one way street.  If you start in, or upgrade to a higher version you cannot go backwards (i.e. no downgrades) without Clearing and starting over.

[modubois]

Thank you David - just to clarify, I won't be able to take the standard mileage deduction or even itemize my expenses? I drove 25,000 miles with my personal car for work (employee) this year, this is terrible news if there is no way to offset those expenses anymore in any way...

[DDollar]

The only suggestion I have for you (and it's not great by any means) is to speak with your boss about perhaps changing your compensation.  There is some good news:  The Standard Deduction (filing single) is now $12,000.  Hopefully that will help.

[modubois]

Forgive my added question (I was an independent contractor until this year, things are working a bit differently now), but how does the Standard Deduction work exactly? Alright no more questions. 🙂

[DDollar]

You get the Standard Deduction automatically.  You can itemized, but if your itemized deductions are less than the Standard Deduction, it makes more sense to use the Standard Deduction.  So, even without claiming your mileage expense, you still get a $12,000 deduction.  $24,000 if your Married Filing Joint, $18,000 if you're Head of Household.

I hope you found this helpful!

[modubois]

That's good news! That should help a little. Thanks a ton for your patience, you have been very helpful! Deluxe Edition it is for me. Cheers!

[DDollar]

Thanks for using TurboTax!!!

[VolvoGirl]

Deductions for job expenses have been suspended with the new tax act.  See Deductions that have been suspended for 2018
https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

And see Turbo Tax FAQ on all the new 2018 changes
https://ttlc.intuit.com/questions/4487298-how-is-turbotax-handling-the-change-to-a-simpler-tax-form-...

[modubois]

Thank you!