Can I deduct business expenses and how?

If you are referring to business expenses that you incur as an employee, these are entered on Form 2106.  However, they are no longer deductible on your Federal return except for certain types of employees.  They may be deductible on your state return, so you should still enter the information.  

Use these steps to get started:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “2106” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to 2106”
• Click on the blue “Jump to 2106” link

Take a look at the following TurboTax article for more details about employee business expenses:  Can employees deduct any job-related expenses?

If you are self-employed, then your business expenses will be deducted as part of your Schedule C.  Use the following steps to get started:  

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link