In TurboTax, you can enter deductions for meal and entertainment expenses, car and gas expenses, and living expenses, depending on the context of these expenses (personal vs. business). Here’s how you can find and input these in the TurboTax software:
Meal and Entertainment Expenses
These are typically deductible for businesses. If you're filing as a business (like a sole proprietor or a partner in a partnership), you can deduct these expenses.
- Navigate to the Business Section: After starting your return and entering preliminary information, head to the business section (In TurboTax Self-Employed or Home & Business versions).
- Find Business Expenses: Look for a section labelled something along the lines of "Business Expenses."
- Enter Meal and Entertainment Expenses: There should be a specific category for meals and entertainment where you can input your expenses. Remember, the IRS allows a 50% deduction for most business-related meal expenses.
Car and Gas Expenses
These are also generally business deductions unless part of deductible moving or medical expenses.
- Navigate to the Business Section (as needed): If the car expenses are for business, go to the business expenses section.
- Vehicle Expenses: You’ll find a section for car and truck expenses, where you can enter gas, maintenance, and other vehicle-associated costs.
For personal deductions related to medical or moving:
- Go to Deductions & Credits: Find sections related to medical expenses or for the 2021 tax year and prior, moving expenses (note the latter is now only deductible for active duty military members moving under orders).
Living Expenses
Generally, living expenses are not deductible unless specific circumstances apply, such as if you’re claiming a home office deduction.
- Home Office Deduction: If you are using part of your home for business, go to the business expenses section and find the home office deduction. This will guide you through prorating some home expenses like rent, utilities, and insurance.
Additional Tips:
- Self-Employed or Business Versions: Some of these deductions are more straightforward to input in the TurboTax Self-Employed or business versions as they’re tailored for business income and deductions.
- Search Feature: Use the search feature within TurboTax to find specific sections for entering these deductions. You can search keywords like “car expenses,” “meals and entertainment,” or “home office.”
- Review Rules: Make sure to review the current IRS rules for these deductions as they can change, and there are specific rules about what constitutes an eligible expense.
- TurboTax Guidance: TurboTax generally provides explanations and guidance as you enter different types of deductions to help determine eligibility and correct entries.
By carefully navigating these sections within TurboTax and ensuring that you are complying with IRS rules, you can correctly input and maximize these deductions where applicable. If there is any confusion or specific situation, consulting with a tax professional can also be beneficial.
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