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Level 1

Itemized deductions

I plan on choosing to use itemized deductions instead of mileage this year. So that my quarterly tax estimate is accurate what total should I enter as my itemized deduction? 

as you know, mileage normally adjusts my tax payment as I drive.

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QuickBooks Team

Itemized deductions

It's a pleasure to have you here in the Community, @rwingfield. Let me share with you some information about itemized deductions in QuickBooks Self-Employed (QBSE).


There are two general deduction methods: standard mileage and actual expenses. 


If they want to use itemized deductions, you have to track all your vehicle expenses and categorize them properly. Then, you'll have to calculate and deduct the exact amount you can spend using your car for business. 


The deduction is proportional. If you drive your car 60% for personal use and 40% for business, your deduction will be 40% of the total actual expenses. Here are some general guidelines:


  • Every expense you claim must be related to business travel, not personal travel.
  • You can claim expenses such as gas, oil, repairs, tires, and more.


Although QuickBooks Self-Employed uses the standard mileage method, it is important to enter and categorize all vehicle expenses in QuickBooks.


When you categorize your vehicle expenses, mark them as Business and use Car and Truck for the expense category. If an expense is for both personal and business travel, categorize it as Business.


In order to calculate your itemized deductions accurately, you need to have the details of the expenses that are eligible for deduction. Once you have the required information, you can enter the total amount of your itemized deductions into QuickBooks Self-Employed. This will help in adjusting your quarterly tax estimates accordingly.


If you need further assistance in determining your potential itemized deductions, it may be best to consult with a tax professional or your accountant to ensure accuracy. Moreover, for a more detailed explanation about this you can check this article: Learn about standard mileage and actual expenses deduction methods.


Moreover, I'll be sharing the following resources to help you find out how QuickBooks Self-Employed calculates the mileage you can deduct from your taxes: Learn how QuickBooks Self-Employed calculates mileage deductions


Fill me in if you need more guidance about itemized deduction in QBSE. I'm always ready to back you up. Take the best care!

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