Can I deduct the Turbotax Home and Business Software and Audit Defense in 2025 if self employed?

[TuckerdogAVL]

Just trying to get a definitive answer on a simple question. Do we call 2025 the 2026 return? So That means as a self employed person I can now deduct the $120 for the software for Home and Business and the $60 Audit Defense again on Schedule C correct? PS The software is called Home and Business and it's not a choice and I'm not on Windows. So "I don't know" isn't the correct answer; I know, they just aren't choices. 

[VolvoGirl]

Oh for what to select when you posted this question?   That doesn’t matter.  You said in your post the version you are using and the OS doesn’t matter.

[Vanessa A · Accepted solution]

Yes.  You can deduct a portion of the cost of TurboTax Home and Business and Audit Defense on your Schedule C.  It would be listed as either accounting expense/bookkeeping or software or Miscellaneous with the description listed as Tax Preparation.  Because it is for both your business and your personal taxes, you cannot deduct the entire amount.  You would only be able to deduct the amount that is directly related to the business.  

The easiest way to do this would be to look at the cost of Deluxe or Premier (whichever software you would be able to use if not for the business) and use the difference in the price as the amount deducted on Schedule C.  Then use that same percentage for the Audit defense that applies to the software.

Example.  If you paid $100 for Home and Business but could have used Deluxe if it was not for the business, and Deluxe was $40, then you would deduct $60 on your Schedule C.  And 60% of the $60 for Audit Defense.  

[TuckerdogAVL]

Perfect. Thanks.