My wife sells Younique makeup. She makes product videos using makeup she purchases and posts them online for her makeup parties. Can that makeup cost be deducted?

[DS30 · Accepted solution]

Yes.

If she is self-employed, she will be able to claim a business expense related to using products for display/demonstration purposes as part of her miscellaneous expense.

If she is an employee and is not reimbursed for these display/demonstration purchases, she will be able to claim an employment related miscellaneous expense as supplies for demonstration.

To report if self-employed -

Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here , then select "Take Me to My Return"), type "Schedule C" in the search bar then select "jump to Schedule C". (This may require an upgrade to enter your self-employed business income and expenses.)

If these expenses are not related to a category lists under the "Other Common Business Expenses", then report these business expenses under "Other Miscellaneous Expenses."

Alternatively, To enter these business expenses into TurboTax Online (for TurboTax Online sign-in, click Here) or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Business"” tab
2. Next click on “I’ll choose what I work on” (jump to full list)
3. Scroll down the screen until to come to the section “Business Income and Expense”
4. Choose “Profit or Loss from Business ” and select start/revisit/update.
5. If your business is already listed, choose to "edit"
6.  You will eventually get to a screen titled "Your () Business"
7. Scroll down to Business Expenses and select "Other Common Business Expenses".
8. Select "Other Miscellaneous Expenses" and enter here as "demonstration supplies.

Please refer to this IRS link for more information about Business Expenses

To report if employee -

These job-related expenses may not be fully deductible because they are subject to a 2% AGI limitation and are only deductible if you itemize.

To enter your job-related expenses in TurboTax Online or Desktop (for TurboTax Online sign-in, click Here), please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab
2. Next click on “Deductions and credits”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Employment Expenses”
5. Choose "show more", then Job-related expenses and follow the onscreen instructions

• Say "yes" to question "Did you have any of these expenses in 2016 for your W-2 income?" under the screen titled "Employment Expenses Related to a W-2".
• after about 6 to 10 question screens, you will get to a screen titled "Any Other Expenses" you can put this information here