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March 6, 2021
Question

$70,000 in business expenses . do I take the standard deduction or itemize

  • March 6, 2021
  • 1 reply
  • 0 views
why doesn't turbo tax answer the question

1 reply

DoninGA
Employee
March 6, 2021

Business expenses have nothing to do with a standard or itemized deduction.  Itemized deductions are only for your personal deductions not associated with your business.  The Total of all itemized deductions must be greater than the standard deduction for your filing status to have any tax benefit.

 

You enter your business income and expenses on the same Schedule C if you are a sole proprietor/independent contractor.

Employee
March 6, 2021

If you are self-employed, you may have to upgrade your TT package.  But note  that these expenses are no longer deductible if you are a W-2 employee.