I am 1099 worker who visits home by home for my job and I use my car. I purchased an electric car in May this year and I know there is a tax deductible for buying a electric car. How do I report that and how do I file a tax regarding that in TurboTax. Since I'm working as a 1099 worker, can i have deduction on the car purchase or car loan interest?
So as a self-employed person, you are able to deduct your vehicle expenses on the Schedule C. You can take the mileage deduction, or actual expenses, whichever is better for you. Deducting your expenses reduces your self-employed taxable income.
In addition to being able to deduct your expenses, you may be eligible for the Electric Vehicle Credit. The tax credit is not refundable, which means you must have federal tax due to take advantage of it. If your tax due is less than the credit amount, you can only claim the credit up to the amount of your tax due. You cannot use excess amounts of the credit on future- or previous-year tax returns. The credit ranges between $2,500 and $7,500, depending on the capacity of the battery. The credit begins to phase out for a manufacturer, when that manufacturer sells 200,000 qualified vehicles.
Vehicles eligible for the Electric Vehicle Credit can be located using the below link:
https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit