I started my business with a bank loan of 17,700 which I am paying payment and interest on from the business. Where do I list this loan and payments, I am using Home/Bus

I am going to jump in here and only address the loan component.

From a business perspective there are two components to your financials; the income statement (Schedule C) and also a balance sheet.  Many small businesses do not always maintain a balance sheet, but I would recommend every business have one.

You can think of the loan in a couple of different ways:

• When you contribute in $$ you (the business) will use those $$ to purchase items.  Those items that you purchase are then written off as expenses or possible you purchase an asset that will then be depreciated.  If you would take money out of the company to pay yourself back, your wouldn't expense that repayment.
• Borrowing money from a bank is the same way.  The business uses the $$ from the bank to purchase something and that is what gets expenses.  If you expensed the repayment you would be taking a deduction twice.

• You borrow the money from the bank.  Here you debit cash and credit loan payable.  This is all balance sheet related.
• Now when you purchase something with those $$ you debit an expense account and credit cash. 
• Then you repay the loan you debit the loan payable (for the principal portion) and credit cash.
• The first and third bullet essentially are a wash and the impact on the tax return is the second bullet.
• The last component is paying the interest on the loan.  Here you would debit interest expense and credit cash.

Thank you for your comment. I have another issue that I need an answer to. Last year's Michigan State return in Column 24 listed a tax liability of $3311 and in column 29 listed that I paid in $3479. so I received a $168 refund. This year turbo tax is listing the $3311 was a due tax and is reporting an underpayment fee of $106. How can I proceed with my Turbo Tax filing without this penalty?  How can there be taxes due when I got a refund?. Thanks for your help.

The loan payments themselves are not deductible.

The interest paid on the loan is deductible and should be listed as an interest expenses for the business. 

The loan is against the business so the payment have to be listed as an expense somewhere?

" loans used for business purposes are tax deductible--however, only the interest can be written off."  Some links to look at are:  <a rel="nofollow" target="_blank" href="http://smallbusiness.chron.com/deduct-money-loaned-start-business-15001.html">http://smallbusiness.chron.com/deduct-money-loaned-start-business-15001.html</a>
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3539394-payments-on-a-business-loan-deductible">https://ttlc.intuit.com/questions/3539394-payments-on-a-business-loan-deductible</a>
The IRS does not let individuals write off interest from personal credit cards or loans. ... They have deemed business interest to be a legitimate business expense, and that is tax deductible.

You write off the principal part of the loan by entering the actual expenses you paid with it.  You can only deduct your actual out of pocket expenses.

I understand your answer twice that I can write off the interest on the loan. My question is do I list the payments to the loan as a business expense? Where? Thank you

Just the interest.  Not the principal part.  Are you asking where to enter the interest?

Go to Business tab- then Continue
Choose Jump to Full List -or I'll choose what I work on

Then…..
Business Income and Expenses - Click the Start or Update button

Then click EDIT by the business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses
You should see the list of expenses and amounts you entered.
Then click the start or update button by the expense you want to add or edit.

Interest Payments is the 7th item under Expenses - Click the Start or Update button

The loan was necessary to start/run the business. As such, it has to be a business expense that has to be paid back. Why are you saying it can't be an expense. Who is going to pay it, me the employee?

You can deduct the interest.  

You can not deduct paying back the loan.  You deduct it by only deducting the actual expenses you used it for.  The things you bought.  Or that would be expensing it twice.  Exactly what did you use the loan for?  Did you buy things with it?

 Is it your business or are you just an employee?

Oh, it might depend on what kind of business entity you set up.  Are you doing a separate business return like a 1065 Partnership or LLC?  Or a 1120 S or C corp?  Those work differently than a sole proprietor self employed schedule C business.

I own the business. The loan was for the company that is teaching me how to do the business. It did not buy a product that can be resold or that is expensed anywhere else.

What you paid to the company is an expense.  Doesn't matter how you paid it like credit card, cash, loan.  You can expense the whole amount.  You are expensing the payment not the loan.  Just like anything else you buy for the business like paper and pens.  I'm not sure where to put education.  Maybe under Commissions and Fee?  If you don't see a category that fits you can always enter it under Other Expenses, line 27a.

Here is a blank schedule C
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040sc.pdf">https://www.irs.gov/pub/irs-pdf/f1040sc.pdf</a>

Here is general info for new businesses,

Here is some reading material……

IRS information on Self Employment….
<a rel="nofollow" target="_blank" href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center">http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center</a>

Pulication 334, Tax Guide for Small Business
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p334.pdf">http://www.irs.gov/pub/irs-pdf/p334.pdf</a>

Publication 535 Business Expenses
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p535.pdf">http://www.irs.gov/pub/irs-pdf/p535.pdf</a>

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return....
<a rel="nofollow" target="_blank" href="http://quickbooks.intuit.com/self-employed">http://quickbooks.intuit.com/self-employed</a>


PAYING QUARTERLY ESTIMATES
You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
 
- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year you start with your current return, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

I am doing a personal/business return that came with the Home/Business T. Tax. The business is an LLC.

You set up your own business as a LLC?  If it is a Single Member LLC you fill out a schedule C in your personal return for it.  If it is set up as a  S corp you need to do a separate LLC return for it.

Screen shot of interest expense