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Need help in learning how to classify some deductions

Today while doing my income taxes, I realized that I've mistakenly used a subcategory wrong in Quicken, to identify several different expenses I've incurred for my side business. What I want to do is reclassify the expenses in Quicken, to get a better report from Quicken for doing my income taxes with TurboTax.

 

Here are the items which I'd like to classify correctly as subcategories under "Business Expenses" in Quicken:

  • I spend a significant amount of money for online training. This is all for my side business. And I don't get reimbursed from my employer in my day job. (Which makes sense as it isn't related to my day job.)
  • I've got a website for my side gig. I've got annual expenses related to pay the hosting company to host my website, domain registration, and other expenses related to the website.

Would some or all of this be put under Supplies and maintenance, such as is reported in Schudule C? Would any of them be called Office Expenses? Or do other items better fit what I've described?

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1 Best answer

Accepted Solutions
ColeenD3
Expert Alumni

Need help in learning how to classify some deductions

You can just include them as miscellaneous expenses, however, education for a new business is not deductible.

 

 Education that qualifies you for a new job or profession is not deductible. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.

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3 Replies
ColeenD3
Expert Alumni

Need help in learning how to classify some deductions

You can just include them as miscellaneous expenses, however, education for a new business is not deductible.

 

 Education that qualifies you for a new job or profession is not deductible. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.

Need help in learning how to classify some deductions

@ColeenD3 Is a Miscellaneous expense deductible or is it merely a way of categorizing web hosting and domain registration expenses?

ColeenD3
Expert Alumni

Need help in learning how to classify some deductions

Yes, this is a catch-all category of deductible expense, that is not specialized.

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