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How do I claim vehicle expenses if I'm self-employed?

by TurboTax Updated 1 week ago

If you used your vehicle to earn self-employed income, then you're eligible to claim vehicle expenses.

You can't claim the total amount of your vehicle expenses, but you can deduct the percentage that relates to your business activities.

Select your product and follow the instructions to claim these expenses in TurboTax.

  1. Answer all the initial interview questions if you haven't already.
  2. Select Find, search for and select Self-Employment, then select Go.
  3. On the Did you have any self-employment income and expenses screen, select Yes, then Continue.
  4. Continue to answer questions about your self-employment. Continue through the Next up, claiming your expenses screen.
  5. On the Select the types of expenses you have screen, select Add under Vehicle expenses, then Continue.
  6. Select Start under Vehicle expenses.
  7. Answer Yes to Did you use a vehicle for your work?
  8. Select Add a new vehicle.
  9. Answer the questions about your vehicle
  1. Answer all the initial interview questions if you haven't already.
  2. Select Find, search for and select Self-Employment, then select Go.
  3. On the Your self-employment profile for 2023 screen, select your work category, then Continue.
  4. Answer questions about your self-employment.
  5. On the second T2125 - Professional Business Statement #1 screen, enter your vehicle info, then select Continue.

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