As a business owner or self-employed
individual, you can enter either the
standard mileage rate or the actual cost method, which tracks what you paid
for gas and maintenance.
To use the standard mileage rate, you must
keep a log of each trip with miles driven during the first year your vehicle is
used for business. After that, you can either go with standard mileage or
actual cost (unless you lease, in which case you must stick with standard
mileage for the duration of the lease).
To enter vehicle related expenses:
- In the Self-Employed Turbo Tax version
with the Federal Taxes tab at the top
- Click on the Federal Taxes tab
- Click on Income and Expenses
- You may see a prompt for Self-Employment, but
if not
- Click on Check for More Income and See
All Income
- Scroll down to the Self-Employment section
with the blue person icon
- Click on Show More
- And Start or Edit.
- Scroll down past Expenses line and click on
the blue
- Add More Expenses for this work button
- Click on the circle for Vehicle
Expenses
- Click on Continue at the bottom
The vehicle expenses have a series of
questions and you can choose to use either a cost per mile or use the actual
costs for the vehicle (including gas) and the next page has tolls and parking. There are more expense categories on the Add
Expenses page if you click on the blue triangle next to Less
Common Expensesfor legal and professional fees,
commissions and much more.
In the Self-Employed Turbo Tax version
with the Business tab at the top
- Click on the Business tab
- Then Continue and I'll choose what to
work on
-
Update your Profit or Loss from a Business
- Click on the Edit button for the name
of your business
- Under Business Expenses, with the blue
bar graph icon,
- click on Update or Start for
Business Vehicle Expense
click
here for more tax tips for drivers
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