TaxAct Online

1. From within the TaxAct return, click Federal, then Income.
2. From the list of income topics, click Business and Self Employed to expand the dropdown menu.
3. Click Self-Employment/Gig Work (Schedule C).
4. On the screen titled, Here are some of the most commonly used expenses, select Vehicles from the list of expenses.
5. For Vehicles – Actual or Standard, select whether or not you would like to take the standard deduction or enter actual expenses.
   • If you choose to enter actual expenses, you will be prompted to enter this information on the next page, Vehicles – Expenses under Total other actual expenses.
6. When you reach the screen titled Vehicle – Depreciation, click Continue to begin entering Depreciation information if applicable.
   • Under Depreciation – Depreciation Method, select the appropriate depreciation method from the list provided. The program will suggest methods for your asset.
   • Under Depreciation – Asset Life, select the appropriate depreciable life for your vehicle. The program may suggest a depreciable life for you based on the asset type and method selected (see Depreciation – Life of Asset for more information).
   • Under Depreciation – Section 179 Expense, enter the portion, if any, of Car that you would like to deduct as an expense this year using the Section 179 expense election (see Depreciation – Section 179 for more information).
7. If you sold or disposed of the vehicle, enter the date sold under Depreciation – Disposed.
8. You will be prompted to select and enter the value of any other credits that you plan on claiming for the current tax year.

Desktop

1. From within the return, click Federal.
2. From Income Summary, select Business Income or Loss (Includes Contractor/Freelancer income). You will then be prompted to + Add New Copy of Schedule C.
3. Enter or verify income information. Once you have completed this portion of the Q&A, click Start Expenses.
4. On the screen titled, Do you have any vehicle expenses for this business? Click Yes.
5. When prompted, on the screen titled Depreciation and Vehicle Expense – Asset Description, enter description of the asset, the date that it was first used, and the asset type (car, heavy truck, heavy SUV, etc.)
6. For Vehicles – Actual or Standard, select whether or not you would like to take the standard deduction or enter actual expenses.
   • If you choose to enter actual expenses, you will be prompted to enter this information on the next page, Vehicles – Expenses under Total other actual expenses.
7. When you reach the screen titled Vehicle – Depreciation, click Continue to begin entering Depreciation information if applicable.
   • Under Depreciation – Depreciation Method, select the appropriate depreciation method from the list provided. The program will suggest methods for your asset.
   • Under Depreciation – Asset Life, select the appropriate depreciable life for your vehicle. The program may suggest a depreciable life for you based on the asset type and method selected (see Depreciation – Life of Asset for more information).
   • Under Depreciation – Section 179 Expense, enter the portion, if any, of Car that you would like to deduct as an expense this year using the Section 179 expense election (see Depreciation – Section 179 for more information).
8. If you sold or disposed of the vehicle, enter the date sold under Depreciation – Disposed.
9. You will be prompted to select and enter the value of any other credits that you plan on claiming for the current tax year.

Related Links

• Actual Car/Vehicle Expenses
• Schedules C and F – Standard Mileage Rate for Vehicles
• Schedule C – Vehicle Information Part IV