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Taking Business Tax Deductions

Written by a TurboTax Expert • Reviewed by a TurboTax CPAUpdated for Tax Year 2024 • October 16, 2024 2:14 AM
OVERVIEW

TurboTax will show you the money-saving tax deductions you can take as a small business owner.


Key Takeaways

  • Generally, you can deduct any business expense that is both ordinary (common and accepted in your industry) and necessary (helpful and appropriate for your business).
  • You typically can deduct automobile expenses for visits to clients, vendors, suppliers, or travel to business meetings away from your regular workplace.
  • If you loaned money to customers, suppliers, or employees who never paid you back, you may be able to claim a bad-debt deduction to offset part of your loss.
  • You can deduct expenses for employees, including salaries, bonuses, payroll taxes, fringe benefits such as health insurance, sick pay, and vacation pay.

What kind of deductions can I take as a small business?

Sure, you pay tax on your business profits. But there’s good news, too. You can reduce your taxable income significantly by taking all the deductions you’re entitled to as business expenses.

To determine whether you can deduct an expense, ask yourself: Is this expense both ordinary and necessary to the business? The IRS requires both elements.

  1. An expense is ordinary if it is common and accepted in your industry.
  2. An expense is necessary if it is helpful and appropriate for your business.

Read below for information about some of the most common small business deductions.

Automobiles

As a small business owner, you can deduct automobile expenses for visits to clients, vendors, or travel to business meetings away from your regular workplace. If you operate your business out of your home, a drive from your home to a supplier and back home is a 100% deductible business expense.

When figuring auto expenses, each year you typically can choose between taking the standard mileage rate (which generally changes every six months to a year) or deducting your actual expenses for items such as gas, oil changes, tires, repairs, preventive maintenance, insurance and registration.

  • If you choose to deduct your actual expenses in the year you start using your car for business, you can't switch to the standard mileage rate method later.
  • If you choose the standard mileage method in the first year, you can switch back and forth between the two methods in later years.

In choosing the method that yields the higher deduction, the number of miles you drive each year is probably the most important factor.

  • If you do a lot of driving, then the standard mileage rate method may work better for you.
  • Automobiles that consume more gas or require a lot of maintenance may let you claim a higher deduction using the actual expense method.

When deducting your automobile expenses, you need to keep a record of the use of the vehicle. Often, the best way to do this is with a written log of your trips noting the date, miles driven, and purpose of each trip. Try to keep a record of your trips as they occur, when it's easier to keep track of the details or perhaps use a phone app to track your activity.

  • Keep a record of your gas purchases, insurance expense, registration payments, and repairs and maintenance costs.
  • If the IRS ever audits you, these will likely be needed to provide written documentation to substantiate your deduction.

If you're self-employed, even if you claim the standard mileage rate, you can also deduct:

  • the business part of interest on your car loan
  • state and local property taxes
  • parking fees and tolls

Bad debts

How can something bad be good for you? Easy: If you loaned money to customers, suppliers or employees who never paid you back, you may be able to claim a bad-debt deduction to offset part of your loss. This type of debt must have the following characteristics:

  • Debtor-creditor relationship—There must be a legal obligation for a debtor to pay a creditor a specified sum of money. The best way to establish this relationship is with a written document stating the amount of the loan, interest rate, repayment schedule, etc. This is particularly important if you lend your corporation money. Without written documentation of the loan, the IRS may treat the advance as a contribution of capital to the business and it will not be deductible.
  • Worthlessness—You must prove that the debt is uncollectible and that you attempted to collect it.
  • Loss—You must have sustained a loss because of the debt.

It's also possible to claim a bad-debt deduction if someone doesn't pay you for work you performed or products you sold.

  • To qualify for this tax-saving deduction, though, you must use the accrual method of accounting, which entails booking income when a product or service is sold, for example.
  • If your business uses the cash-basis method, you can't deduct a worthless receivable as a bad-debt expense because you don't count income until it is received. You would not need a deduction to offset the amount not included in your income.

Depreciation

With an ordinary business expense, you typically deduct the entire cost of the purchase in the tax year of the expense. But if you purchase an asset for your business that you will use beyond the current tax year, you usually are required to spread out the deduction over the asset's expected life. This concept of spreading out a deduction over the life of an asset is called depreciation.

The asset needs to meet three requirements in order to be depreciated. It must be:

  1. used in the business or held to produce income
  2. expected to last more than one year
  3. something that wears out, gets used up, or loses its value over time

The following assets can't be depreciated:

  • property that you place in service and dispose of in the same year
  • inventory
  • land
  • repair and maintenance expenditures that do not increase the value of your asset, make it more useful, or increase its life (These expenses are typically deductible in full in the year you incur them.)

Of course, there are always exceptions. Small businesses may be able to deduct all or most of the cost of a depreciable asset in the year it is placed in service instead of spreading the cost out over the life of the asset.

  • This can be accomplished with bonus depreciation or Section 179 deductions, named after the section of the tax code that authorizes it.
  • It also goes by the phrase "expensing," because you get to deduct the full cost at once—just like you do for business expenses—rather than depreciating the capital asset over time.
  • For assets placed in service in the 2024 tax year, you can take a maximum Section 179 deduction of $1,220,000.
  • The amount you can expense is reduced if you purchase more than $3,050,000 in eligible property during the year.

While the idea of taking a huge deduction right away may sound good to you, be careful, because there is a downside. If you sell an asset, you may have to recapture all or part of the depreciation deductions. (Recapture means reversing all or part of your earlier deductions by adding them back as income.)

Bonus Depreciation: Bonus depreciation has been changed for qualified assets acquired and placed in service after September 27, 2017. The old rules of 50% bonus depreciation still apply for qualified assets acquired before September 28, 2017. These assets had to be purchased new, not used. The new rules allow for 100% bonus "expensing" of assets that are either new or used through 2022.

  • The percentage of bonus depreciation phases down in 2023 to 80%, 2024 to 60%, 2025 to 40%, and 2026 to 20%.
  • After 2026 there is no further bonus depreciation unless it gets extended.
  • This bonus "expensing" should not be confused with expensing under Code Section 179 which has entirely separate rules explained above.
  • The 100% bonus expensing is also available for certain productions (qualified film, television, and live staged performances) and certain fruit or nut trees planted or grafted after September 27, 2017.
  • Taxpayers can make an election to opt out of the new bonus depreciation rules and use 50% bonus first year depreciation per the prior rules for the first tax year ending after September 27, 2017.

Employee compensation

Compensation you pay employees is deductible, including:

  • salaries
  • awards
  • bonuses
  • payroll taxes
  • fringe benefits such as health insurance, sick pay and vacation pay

You get a deduction whether you pay wages to employees, to whom you provide a W-2, or use independent contractors, to whom you issue Form 1099-NEC. You can also write off the cost of qualified benefits such as:

  • group-term life insurance
  • adoption assistance
  • dependent-care assistance
  • educational assistance

Other deductible fringe benefits include qualifying expenses such as:

  • discounts on goods or services
  • flights on airplanes
  • meals and lodging
  • memberships in country clubs
  • tickets to entertainment or sporting events
  • use of a company car

TurboTax Tip:

If you use a specific area of your home regularly and exclusively for your business, you may be able to claim the home office deduction. Generally, your home office must be your principal place of business or you must use it to meet clients on a regular basis.

Home office

You can work out of your home and save on taxes at the same time. Sound impossible? It’s not, but the home office deduction is a bit tricky, so you need to know all of the details. To take the home office deduction, you have to use your home office regularly and exclusively for your business. Generally, your home office must be your principal place of business, or you must use it to meet clients or customers on a regular basis.

  • Exclusive use means that you've got a specific area of your home that you use only for your trade or business. For example, if the den in your home is used only as your office, you can take the deduction. But if the kids also play there or you use it as an entertainment area, you can’t.
  • Regular use means that you use the space as an office on an ongoing basis. Occasional or incidental business use does not qualify even if the space is used exclusively for business purposes.

To claim that your home office is your principal place of business, you are required to perform the most important part of your work there or use the office for administrative or management activities, and not perform these activities at any other fixed location, such as another office off-site.

Examples of administrative and management activities include:

  • billing customers
  • keeping books and records
  • setting appointments
  • ordering supplies
  • writing reports

For example, if your business involves repairing clients' computers in their homes, you can deduct your home office if you use it to set up appointments and bill customers, even though you don't repair the computers in your office.

You can also claim the home office deduction if you store inventory or product samples there, or if you operate a day care facility.

The size of your deduction depends on the percentage of your home that is used for business. If your total business expenses exceed gross income from business use of your home, your deduction can be limited.

The two most common methods of calculating business percentage are:

  • dividing your home office's square footage by that of the entire house
  • dividing the number of rooms used for business by the home's total number of rooms, if all rooms are about the same size

The IRS has a simplified option for claiming the deduction. This new method uses a prescribed rate multiplied by the allowable square footage used in the home.

  • For 2024, the prescribed rate is $5 per square foot with a maximum of 300 square feet.
  • If the office measures 150 square feet, for example, then the deduction would be $750 (150 x $5).
  • The space must still be dedicated to business activities.

With either method, the qualification for the home office deduction is determined each year. Your eligibility may change from one year to the next.

Because the home office deduction is a complex area that has been the subject of much controversy and many court cases, you may want to look at more detailed discussions of this deduction in IRS Publication 587: Business Use of Your Home.

Insurance

You can deduct insurance expenses for your business as long as they're ordinary and necessary. Common examples include:

  • casualty and theft insurance
  • professional liability or malpractice insurance
  • accident and health insurance
  • coverage for vehicles used in your business

There are a few types of insurance costs that you may not deduct. These include:

  • life insurance where you are directly or indirectly the beneficiary including policies you take out on yourself to secure a loan for your business
  • loss-of-earnings insurance that pays for lost earnings due to sickness or disability

Interest

Generally, you can deduct all of the interest you pay during the tax year on debts related to your business.

  • For example, if you take out a bank loan to buy business equipment, that interest is deductible.
  • If you're just starting your business and you use a credit card to help with start-up costs, or if a relative loans you money, such interest costs are also tax-deductible.

A corporation can deduct the interest it pays on loans from its shareholders. There should be a valid business purpose for such a borrowing arrangement and written documentation in place detailing the:

  • amount of the loan
  • interest rate
  • maturity date

Since these types of arrangements may receive increased scrutiny from the IRS, you should have evidence that the transaction is a loan and not an investment.

Loans that are for both personal and business uses are only partially deductible because the personal use will limit your deduction. For example, if you take out a car loan on a vehicle that you use for both business and personal reasons, part of the loan interest won't be deductible.

Legal and professional fees

Fees that you pay to professionals, such as attorneys and accountants, are deductible when they relate to your business. If you purchase depreciable business assets, the fees paid for professional services are not deducted, but are added to the tax basis (or cost) of business asset.

Example:  You negotiate the purchase of a pool-cleaning route for $22,500. You pay $2,500 in professional fees for an attorney to draft a non-compete agreement with the seller and hire an accountant to perform a due-diligence review of the books. For tax purposes, your cost basis in the pool route is $25,000 ($22,500 + $2,500).

If you began the business this year, legal fees to incorporate or to organize your business as a partnership may also be deductible.

  • In 2024, you can deduct up to $5,000 in business start-up expenses and another $5,000 in organizational expenses in the year you begin business.
  • Additional expenses need to be amortized over 15 years.

If you are a sole proprietor, you can deduct accounting and tax preparation fees on Schedule C, to the extent that they are related to your business.

Pension plans

If you set up and maintain a retirement plan such as a Simplified Employee Pension (SEP) plan or a Savings Incentive Match Plan for Employees (SIMPLE) plan, you can deduct contributions you make for yourself and your employees.

If you don't have any full-time employees, except your spouse, you may find that an individual 401(k) plan may offer an even better deal than a SEP or SIMPLE plan.

Typically, qualified contributions for a sole-proprietor are not deductible as a business expense but are a deduction for calculating your adjusted gross income and therefore can reduce your income tax.

You can also deduct trustee fees incurred to maintain and administer the plan if contributions to the plan don't cover those fees. To learn more about different plans and how to set them up, see:

Rent

The IRS defines rent as any amount that you pay to use property you do not own. Most of us are familiar with the concept of paying rent for office space, land or equipment. The home office deduction discussed above allows for the deduction of a portion of your rent on your home, condo or apartment if you use part of it as a place of business.

If you rent property from your relatives or a related company and the IRS deems the rent to be excessive, the IRS will disallow the deduction.

  • To avoid this, make sure the rent is comparable to what you would pay a stranger.
  • Contact a real estate agent and ask them to prepare comparisons of similar properties in the area to substantiate the rent you are paying to a related party.

Rents are usually deductible in the year they are paid.

  • For rent paid in advance, you can only take a deduction for the portion that applies to your use of the property during the tax year.
  • For example, on January 1, 2024 you sign a three-year lease for office space, agreeing to pay a total of $30,000 in rent. You pay the entire cost up front. You can deduct $10,000 in 2024 and another $10,000 in each of the next two years.

Taxes

There are many taxes that you can deduct when operating a business. For example, if your state taxes the gross income of your business, you can deduct that tax on your federal return. As an employer, you can also deduct your share of your workers' employment taxes.

Here are some other taxes you can deduct:

  • Personal property taxes imposed by your state or local government for business property.
  • Real estate taxes, which are deductible to the extent that you use the land for your business. If you qualify for the home office deduction, you can deduct a portion of your real estate tax against your gross revenue.
  • Sales and excise taxes, which are deductible when paid for business-related purchases or services. But if the tax is on a depreciable asset, add the tax to the basis of the asset.

Fuel taxes that you pay for gasoline, diesel or other types of motor fuels are already reflected in the cost of the fuel, so you can't deduct these taxes as a separate item. Note that you may be entitled to a credit or refund for federal excise tax you paid on fuels used, for example, in a farming operation where your vehicles are used off-road.

Travel, meals, and entertainment

Go out on the town with your clients, pick up the bill and get a tax deduction. What could be easier? Just make sure that the outing is business-related. In other words, any payments you deduct for travel and meals must be ordinary and necessary in your trade or business.

  • In general, for tax years prior to 2018, entertainment expenses must be directly related to, or associated with, the conduct of your trade or business.
  • Beginning in 2018, generally, entertainment expenses are no longer deductible.

Travel expenses include those for ordinary and necessary travel away from home overnight for your business. You must meet two conditions to take the travel expense deduction:

  1. Your duties require you to be away from home (your regular place of business, regardless of where you maintain your family home) substantially longer than an ordinary day's work.
  2. You need sleep or rest to meet the demands of your work while you're away.

If your trip meets these requirements, you can deduct a wide variety of travel-related expenses, including costs for:

  • transportation (using a plane, train, bus or car) between your home and your business destination, including taxi, commuter bus and limousine fares
  • shipping items such as samples or display materials
  • using your own vehicle for business travel. You can choose between deducting actual expenses or taking the standard mileage rate.
  • tolls and parking
  • rental cars
  • meals and overnight lodging - you may deduct only 50% of the cost of business meals. Except that in 2021 and 2022 you can deduct 100% of the cost of qualified business meals provided by a restaurant. For 2023 and onward the limit is back to 50%.

Other deductible travel-related expenses include:

  • costs for dry cleaning and laundry care
  • telephone calls
  • use of office machines
  • tips

Meal expenses include those incurred while traveling away from home or for business-related meals with business associates at your place of business, a restaurant or other location. This deduction may also apply to meals you furnish on your premises to your employees.

Entertainment expenses fall into a broad category and include any activity generally considered to provide amusement or recreation. Some examples include hosting clients at social, athletic or sporting clubs, theaters, yacht trips, hunting or fishing, vacations and the like. Beginning with tax years after 2017, generally entertainment expenses are no longer deductible.

For more information on travel, see IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses.

Other

So far, we've discussed the most common small business deductions. Other deductible expenses include:

  • advertising
  • educational expenses
  • licenses and regulatory fees
  • dues and subscriptions for professional organizations or business publications
  • recruiting services for hiring employees
  • penalties and fines you pay for late performance or nonperformance of a contract

Expenses you can't deduct

Sorry, the news on write-offs isn't all good: Some business expenses are not deductible under any circumstances including:

  • dues you pay at a club to be a member even if your membership is for business
  • federal income tax payments
  • lobbying expenses
  • penalties and fines you pay when you break the law
  • political contributions

With TurboTax Live Business, get unlimited expert help while you do your taxes, or let a tax expert file completely for you, start to finish. Our small business tax experts are always up to date with the latest tax laws and will ensure you get every credit and deduction possible, so you can put more money back into your business. Small business owners get access to unlimited, year-round advice and answers at no extra cost and a 100% Accurate, Expert Approved guarantee.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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  • Get your tax refund 5 days early in your bank account: If you choose this paid add-on feature, your federal tax refund will be deposited to your selected bank account 5 days before the refund settlement date provided by the IRS (the date your refund would have arrived if sent from the IRS directly). The receipt of your refund 5 Days Early is subject to IRS submitting refund information to us at least 5 days before the refund settlement date. IRS does not always provide refund settlement information 5 days early. You will not be eligible to receive your refund 5 Days Early if (1) you take a Refund Advance loan, (2) IRS delays payment of your refund, or (3) your bank's policies do not allow for same-day payment processing. 5 Days Early fee will be deducted directly from your refund prior to being deposited to your bank account. If your refund cannot be delivered 5 Days Early, you will not be charged the 5 Days Early fee. Excludes business tax returns. 5 Days Early program may change or be discontinued at any time without notice.

    Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/.

  • Get your tax refund up to 5 days early with Credit Karma Money™: When it's time to file, have your tax refund direct deposited to a Credit Karma Money™ checking or savings account, and you could receive your funds up to 5 days early. If you choose to pay your tax preparation fee with TurboTax using your federal tax refund or if you choose to take the Refund Advance loan, you will not be eligible to receive your refund up to 5 days early with Credit Karma. 5-day early program may change or discontinue at any time. Up to 5 days early access to your federal tax refund is compared to standard tax refund electronic deposit and is dependent on and subject to IRS submitting refund information to the bank before release date. IRS may not submit refund information early. Excludes business tax returns. Banking services for Credit Karma Money accounts are provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply per account. For more information, please visit https://turbotax.intuit.com/credit-karma-money/.

  • Loan details and disclosures for the Refund Advance program: If you expect to receive a federal refund of $500 or more, you could be eligible for a Refund Advance loan. Refund Advance loans may be issued by First Century Bank, N.A. or WebBank, neither of which are affiliated with MVB Bank, Inc., Member FDIC. Refund Advance is a loan based upon your anticipated refund and is not the refund itself. 0% APR and $0 loan fees. Availability of the Refund Advance is subject to satisfaction of identity verification, certain security requirements, eligibility criteria, and underwriting standards. This Refund Advance offer expires on February 28, 2025, or the date that available funds have been exhausted, whichever comes first. Offer, eligibility, and availability subject to change without further notice.

    Refund Advance loans issued by First Century Bank, N.A. are facilitated by Intuit TT Offerings Inc. (NMLS # 1889291), a subsidiary of Intuit Inc. Refund Advance loans issued by WebBank are facilitated by Intuit Financing Inc. (NMLS # 1136148), a subsidiary of Intuit Inc. Although there are no loan fees associated with the Refund Advance loan, separate fees may apply if you choose to pay for TurboTax with your federal refund. Paying with your federal refund is not required for the Refund Advance loan. Additional fees may apply for other products and services that you choose.

    You will not be eligible for the loan if: (1) your physical address is not included on your federal tax return, (2) your physical address is located outside of the United States or a US territory, is a PO box or is a prison address, (3) your physical address is in one of the following states: IL, CT, or NC, (4) you are less than 18 years old, (5) the tax return filed is on behalf of a deceased person, (6) you are filing certain IRS Forms (1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862), (7) your expected refund amount is less than $500, or (8) you did not receive Forms W-2 or 1099-R or you are not reporting income on Sched C. Additional requirements: You must (a) e-file your federal tax return with TurboTax and (b) currently have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply. Opening a Credit Karma Money™ Spend (checking) account is subject to eligibility. Please see Credit Karma Money Spend Account Terms and Disclosures for details.

    Not all consumers will qualify for a loan or for the maximum loan amount. If approved, your loan will be for one of ten amounts: $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000. Your loan amount will be based on your anticipated federal refund to a maximum of 50% of that refund amount. You will not receive a final decision of whether you are approved for the loan until after the IRS accepts your e-filed federal tax return. Loan repayment is deducted from your federal tax refund and reduces the subsequent refund amount paid directly to you.

    If approved, your Refund Advance will be deposited into your Credit Karma Money™ Spend (checking) account typically within 15 minutes after the IRS accepts your e-filed federal tax return and you may access your funds online through a virtual card. Your physical Credit Karma Visa® Debit Card* should arrive in 7 - 14 days. *Card issued by MVB Bank, Inc., Member FDIC pursuant to a license from Visa U.S.A. Inc.; Visa terms and conditions apply. Other fees may apply. For more information, please visit: https://support.creditkarma.com/s/article/Are-there-fees-with-a-Credit-Karma-Money-Spend-account.

    If you are approved for a loan, your tax refund after deducting the amount of your loan and agreed-upon fees (if applicable) will be placed in your Credit Karma Money™ Spend (checking) account. Tax refund funds are disbursed by the IRS typically within 21 days of e-file acceptance. If you apply for a loan and are not approved after the IRS accepts your e-filed federal tax return, your tax refund minus any agreed-upon fees (if applicable) will be placed in your Credit Karma Money™ Spend (checking) account.

    If your tax refund amounts are insufficient to pay what you owe on your loan, you will not be required to repay any remaining balance. However, you may be contacted to remind you of the remaining balance and provide payment instructions to you if you choose to repay that balance. If your loan is not paid in full, you will not be eligible to receive a Refund Advance loan in the future.

  • Pay for TurboTax out of your federal refund or state refund: Individual taxes only. Subject to eligibility requirements. Additional terms apply. A $40 service fee may apply to this payment method. Prices are subject to change without notice.

  • TurboTax Help and Support: Access to a TurboTax product specialist is included with TurboTax Deluxe, Premium, TurboTax Live Assisted and TurboTax Live Full Service; not included with Free Edition (but is available as a paid upgrade). TurboTax specialists are available to provide general customer help and support using the TurboTax product. Services, areas of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice. Limitations apply. See Terms of Service for details.

  • TurboTax Live - Tax Advice and Expert Review: Access to an expert for tax questions and Expert Review (the ability to have a tax expert review) is included with TurboTax Live Assisted or as an upgrade from another TurboTax product, and available through December 31, 2025. Access to an expert for tax questions is also included with TurboTax Live Full Service and available through December 31, 2025. If you use TurboTax Live, Intuit will assign you a tax expert based on availability. Tax expert availability may be limited. Some tax topics or situations may not be included as part of this service, which shall be determined at the tax expert's sole discretion. The ability to retain the same expert preparer in subsequent years will be based on an expert’s choice to continue employment with Intuit and their availability at the times you decide to prepare your return(s). Administrative services may be provided by assistants to the tax expert. On-screen help is available on a desktop, laptop or the TurboTax mobile app. For the TurboTax Live Assisted product: If your return requires a significant level of tax advice or actual preparation, the tax expert may be required to sign as the preparer at which point they will assume primary responsibility for the preparation of your return. For the TurboTax Live Full Service product: Hand off tax preparation by uploading your tax documents, getting matched with an expert, and meeting with an expert in real time. The tax expert will sign your return as a preparer.

  • TurboTax Live - Unlimited Expert Support: Unlimited access to TurboTax Live experts refers to an unlimited quantity of contacts available to each customer, but does not refer to hours of operation or service coverage. Service, area of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice.

  • TurboTax Experts - Years of Experience: Based on experts' self-reported years of tax experience.

  • TurboTax Live - Expert Availability: TurboTax Live experts are available on nights and weekends for certain expanded hours during tax season (from January to April) and in the weeks leading up to tax extension deadlines. Outside of tax season, regular hours are Monday through Friday 5am to 5pm PT. Service, area of expertise, experience levels, and wait times vary, and are subject to restriction and change without notice. Unlimited access to TurboTax Live experts is included with all TurboTax Live products.

  • TurboTax Live Full Service - File your taxes as soon as today: TurboTax Full Service experts are available to prepare 2024 tax returns starting January 6, 2025. One-day preparation and filing availability depends on start time, the complexity of your return, is based on completion time for the majority of customers, and may vary based on expert availability. A tax preparation assistant will validate the customer's tax situation during the welcome call and review uploaded documents to assess readiness and ability to file same-day. All tax forms and documents must be ready and uploaded by the customer for the tax preparation assistant to refer the customer to an available expert for live tax preparation.

  • TurboTax Live Full Service - “Local”: For purposes of virtual meetings, “Local" experts are defined as being located within the same state as the consumer's zip code. Not available in all states.

  • Smart Insights: Individual taxes only. Included with TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits, and is available through November 1, 2025. Terms and conditions may vary and are subject to change without notice.

  • My Docs: Included with TurboTax Deluxe, Premium TurboTax Live, TurboTax Live Full Service, or with PLUS benefits and is available through December 31, 2025. Terms and conditions may vary and are subject to change without notice.

  • Tax Return Access: Included with all TurboTax Free Edition, Deluxe, Premium, TurboTax Live, and TurboTax Live Full Service products. Access to up to seven years of tax returns we have on file for you is available through December 31, 2025. Terms and conditions may vary and are subject to change without notice.

  • Easy Online Amend: Individual taxes only. With TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits, you can make changes to your 2024 tax return online through October 31, 2027. For TurboTax Live Full Service, your tax expert will amend your 2024 tax return for you through November 15, 2025; after that date, TurboTax Live Full Service customers will be able to amend their 2024 tax return themselves using the Easy Online Amend process described above. TurboTax Free Edition customers may amend 2024 tax returns online through October 31, 2025. Terms and conditions may vary and are subject to change without notice.

  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2023 TurboTax products.

  • #1 online tax filing solution for self-employed: Based upon IRS Sole Proprietor data as of calendar year 2024, for tax year 2023. Self-Employed defined as a return with a Schedule C/C-EZ tax form. Online competitor data is extrapolated from press releases and SEC filings. “Online” is defined as an individual income tax DIY return (non-preparer signed) that was prepared online and either e-filed or printed, not including returns prepared through desktop software.

  • 1099-Ks: Those filing in TurboTax Free Edition, TurboTax Live Assisted Basic or TurboTax Live Full Service Basic will be able to file a limited IRS Schedule 1 if they have hobby income or personal property rental income reported on a Form 1099-K, and/or a limited IRS Schedule D if they have personal item sales with no gain reported on Form 1099-K. Those filing in TurboTax Deluxe, TurboTax Live Assisted Deluxe or TurboTax Live Full Service Deluxe will be able to file a limited IRS Schedule D if they have personal item sales income reported on Form 1099-K. If you add other schedules or forms, or need to report other types of income on Schedules 1, D, E, F, or Form 4835 you may be required to upgrade to another TurboTax product.

  • 1099-K Snap and Autofill: Available in mobile app and mobile web only.

  • 1099-NEC Snap and Autofill: Available in TurboTax Premium (formerly Self-Employed) and TurboTax Live Assisted Premium (formerly Self-Employed). Available in mobile app only. Feature available within Schedule C tax form for TurboTax filers with 1099-NEC income.

  • Year-Round Tax Estimator: Available in TurboTax Premium (formerly Self-Employed) and TurboTax Live Assisted Premium (formerly Self-Employed). This product feature is only available after you finish and file in a self-employed TurboTax product.

  • Refer a Friend: Maximum of $500 in total rewards for 20 referrals. See official terms and conditions for more details.

  • Refer your Expert (Intuit's own experts): Maximum of $500 in total rewards for 20 referrals. See official terms and conditions for more details.

  • Refer your Expert (TurboTax Verified Pro): Maximum of $500 in total rewards for 20 referrals. See official terms and conditions for more details.

  • Average Refund Amount: $3,207 is the average refund amount American taxpayers received in the 2024 filing season based upon IRS data as of February 16, 2024 and may not reflect actual refund amount received. Each taxpayer's refund will vary based on their tax situation.

  • More self-employed deductions: based on the median amount of expenses found by TurboTax Premium (formerly Self Employed) customers who synced accounts, imported and categorized transactions compared to manual entry. Individual results may vary.

  • TurboTax Online Business Products: For TurboTax Live Assisted Business and TurboTax Full Service Business, we currently don't support the following tax situations: C-Corps (Form 1120) and entities electing to be treated as a C-Corp, Trust/Estates (Form 1041), Tax Exempt Entities/Non-Profits, returns that require more than 5 state filings, and other issues unrelated to the preparation of a tax return or unrelated to business income/franchise taxes. TurboTax Live Assisted Business is currently available only in AK, AZ, CA, CO, CT, DE, FL, GA, ID, IL, KS, MA, MD, ME, MI, MN, MO, NC, NJ, NV, NY, OH, PA, RI, SD, TN, TX, UT, VA, WA, WV, and WY.

  • Audit Defense: Audit Defense is a third-party add-on service provided, for an additional fee, by TaxResources, Inc., dba Tax Audit. Audit Defense is included at no added cost with business returns filed with TurboTax Live Business (excluding Sole Proprietor). See Membership Agreements at https://www.intuit.com/legal/terms/ for service terms and conditions.

TURBOTAX DESKTOP GUARANTEES

TurboTax Desktop Individual Returns:

  • 100% Accurate Calculations Guarantee - Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest. Excludes payment plans. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement for details.

  • Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back - Individual Returns: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable TurboTax federal and/or state software license purchase price you paid. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement for details.

  • Audit Support Guarantee - Individual Returns: If you receive an audit letter from the IRS or State Department of Revenue based on your 2024 TurboTax individual tax return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Support Center, for audited individual returns filed with TurboTax Desktop for the current 2024 tax year and, for individual, non-business returns, for the past two tax years (2022, 2023). Audit support is informational only. We will not represent you before the IRS or state tax authority or provide legal advice. If we are not able to connect you to one of our tax professionals, we will refund the applicable TurboTax federal and/or state license purchase price you paid. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement  for details.

  • Satisfaction Guarantee/ 60-Day Money Back Guarantee: If you're not completely satisfied with TurboTax Desktop software, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request. You must return this product using your license code or order number and dated receipt. Desktop add-on products and services purchased are non-refundable.

TurboTax Desktop Business Returns:

  • 100% Accurate Calculations Guarantee - Business Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest. Excludes payment plans. You are responsible for paying any additional tax liability you may owe. Additional terms and limitations apply. See License Agreement  for details.

  • Maximum Tax Savings Guarantee - Business Returns: If you get a smaller tax due (or larger business tax refund) from another tax preparation method using the same data, TurboTax will refund the applicable TurboTax Business Desktop license purchase price you paid. Additional terms and limitations apply. See License Agreement  for details.

  • Satisfaction Guarantee/ 60-Day Money Back Guarantee: If you're not completely satisfied with TurboTax Desktop software, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request. You must return this product using your license code or order number and dated receipt. Desktop add-on products and services purchased are non-refundable.

TURBOTAX DESKTOP DISCLAIMERS

  • Installation Requirements: Product download, installation and activation requires an Intuit Account and internet connection. Product limited to one account per license code. You must accept the TurboTax License Agreement to use this product. Not for use by paid preparers.

  • TurboTax Desktop Products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for e-filing state returns. E-file fees may not apply in certain states, check here for details. Savings and price comparison based on anticipated price increase. Software updates and optional online features require internet connection. Desktop add-on products and services purchased are non-refundable.

  • Fastest Refund Possible: Get your tax refund from the IRS as fast as possible by e-filing and choosing to receive your refund by direct deposit. Tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

  • Average Refund Amount: $3,207 is the average refund amount American taxpayers received in the 2024 filing season based upon IRS data as of February 16, 2024 and may not reflect actual refund amount received.

  • TurboTax Technical Support: Customer service and technical support hours and options vary by time of year.

  • Deduct From Your Federal Refund: Individual taxes only. Subject to eligibility requirements. Additional terms apply. A $40 Refund Processing Service fee applies to this payment. method. Prices are subject to change without notice.

  • Data Import: Imports financial data from participating companies; Requires Intuit Account. Quicken and QuickBooks import not available with TurboTax installed on a Mac. Imports from Quicken (2022 and higher) and QuickBooks Desktop (2023 and higher); both Windows only. Quicken import not available for TurboTax Desktop Business. Quicken products provided by Quicken Inc., Quicken import subject to change.

  • Live Tax Advice: Access to tax experts to obtain answers to tax questions and to assist with tax year 2024 return(s) prepared with TurboTax Desktop software. Additional fees apply. Must be purchased and used by October 31, 2025. Excludes TurboTax Desktop Business. See License Agreement for details.

  • Audit Defense: Audit Defense is a third-party add-on service provided, for a fee, by TaxResources, Inc., dba Tax Audit. See Membership Agreements at https://turbotax.intuit.com/corp/softwarelicense/ for service terms and conditions.

All features, services, support, prices, offers, terms and conditions are subject to change without notice.

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