Question

Home business travel expenses aren't deducted 1 for 1?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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When I entered a travel expense of, say $100, I only saw my Federal Tax Due amount reduce by a much smaller amount, like $20 or something. Are business travel expenses not a 1 for 1 deduction?

TurboTax Self Employed Online

C

Celery63

No that is not a 1 for 1 reduction in your tax, only a tax credit does that. A deduction reduces your tax by reducing your taxable income. The maximum tax benefit is the deduction times your marginal tax rate. So if you are in the 20% tax bracket, a $100 deduction reduces your tax by $20.