If you're a tax bundle subscriber, you can export your QuickBooks Self-Employed data directly into TurboTax. There are, however, certain deductions that won't export to TurboTax because they require a little more attention on your part. Here's what you need to do.
Step 1: Review these deduction types
- Interest paid. Only the interest portion of business loan and credit card payments is deductible. Make sure to categorize the correct amount for these expenses before filing your tax return.
- Home office. We use the simplified method for calculating this deduction: multiply your home office square footage by a set amount (currently $5 and not to exceed 300 square feet). For filing your annual taxes, TurboTax (or your accountant) compares the simplified method with the standard method (actual expenses over the year) to see which is most beneficial to your tax return.
- Vehicle loan interest. The "Interest paid"note above applies here, too.
- Other vehicle expenses. Some vehicle expenses such as fines, tickets, and the principal portion of an auto loan aren't deductible. Exclude these types of payments to get the most accurate deduction total for your tax return.
- Healthcare expenses. Certain healthcare expenses may be considered business, while others may be considered personal. Where you purchased your insurance can also affect how you claim the expense. Like the home office deduction, TurboTax (or your accountant) can walk you through accurately claiming these expenses. And don't forget to complete the Healthcare profile and categorize your healthcare expenses to get the deduction totals for your tax return.
Step 2: Manually enter applicable deductions in TurboTax
- If you determine that you're eligible for these types of deductions, add them to TurboTax manually. You can find these numbers on the Taxes > Annual taxes page, or download the Tax Summary PDF from that same page.