This article will walk you through entering vehicle information to calculate the actual expense or standard mileage rate to be reported on a Schedule C, E, F, or Form 2106. For Schedule C filers, this information will also flow to the Schedule C, Part IV, or Form 4562, Part V, whichever is applicable. If you would like to depreciate the vehicle, use How to Enter Mileage or Expenses on a Depreciated Vehicle, instead.
Follow these steps to enter vehicle expenses:
- Go to the Input Return tab.
- On the left-side menu, click Deductions to expand that section.
- Select Vehicle/ Employee Bus. Expense (2106).
- Select the form you want to link this vehicle to in Form (Click on arrow to select from list).
- Scroll down to the Vehicle Information section and fill out the applicable information for the vehicle.
- In the Vehicle Expenses section, enter the Date placed in service, Total mileage, and Business mileage.
- Scroll down to the Actual Expenses subsection and enter any applicable amounts.
- If actual expenses are entered, the program will automatically figure the greater deduction between mileage or actual expenses. You can force either deduction in the field 1=Force Actual Expenses, 2=Force Standard Mileage Rate.
- Two vehicles can be entered on each tab. If more entries are required, click the + at the top of your screen to add a new tab.
- If you link more than two vehicles to the same Schedule C, the listed property information carries to Form 4562, page 2.
- Handicapped employee expenses carry to Schedule A in full if you enter 2 in: 1 If Qualified Performing Artist, 2 If Handicapped Employee, 3 If Fee-Basis Govt. Official.
- Fee-Basis government official expenses carry directly to Form 1040 if you enter 3 in: 1 If Qualified Performing Artist, 2 If Handicapped Employee, 3 If Fee-Basis Govt. Official.
- Excess reimbursements for expenses other than meals and entertainment carry to Form 1040 as additional wage income.
How do I generate Form 2106?
How to Enter Mileage or Expenses on a Depreciated Vehicle
Diagnostic Ref. 584 Schedule C Auto and Truck Expenses Require Evidence to Support the Deduction
Allocating Expenses for One Vehicle to Multiple Businesses on a 1040
Individual Schedule C Part IV Vehicle Information is not Completing