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

SOLVEDby TurboTax14Updated July 26, 2022


If you used your vehicle to earn self-employed income, then you're eligible to claim vehicle expenses. These expenses can be used to reduce the amount of taxable business income you earned.

While you may not claim the total amount of your vehicle expenses, you may be eligible to deduct the percentage that relates to your business activities.

The video provided will show you how to enter these expenses into TurboTax Self-Employed, or refer to the following instructions:

  1. From the Income section in the menu, select Self-Employment, then select Self-Employment Intro
  2. Enter your self-employment information on the screens that follow, selecting Continue after you complete each screen
  3. When you arrive at the Did you have any work-related vehicle expenses? screen, select Yes, then Continue
  4. You'll reach Your Vehicle Expenses Summary. Select Add a Vehicle for Business Use
  5. Fill out applicable information on the form provided, then select Continue
  6. You'll be brought back to Your Vehicle Expenses Summary. Select Done with Vehicles
  1. From the Income & Expenses section in the menu, select Self-Employment
  2. Enter your self-employment information on the screens that follow, selecting Continue after you complete each screen
  3. You'll enter information about your vehicle on the second T2125 - Professional Business Statement #1 screen. In the Calculation of Motor Vehicle Expenses section, be sure to include the total amount of KM you drove your business vehicle in the fiscal year, and the amount you drove only for business purposes
  4. Fill out all other applicable information, including leasing details (if any), and select Continue

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