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20 Tax Deductions for Self-Employed People

Written by Rocky Mengle, Attorney • Reviewed by Miguel Burgos, CPAUpdated for Tax Year 2024 • October 16, 2024 1:48 AM
OVERVIEW

There are many business tax deductions for self-employed people operating their business as a sole proprietorship. Most of them are claimed on Schedule C of Form 1040, but a few deductions are reported on Schedule 1 or even right on the first page of your 1040 form. The deductions cover a wide variety of ordinary and necessary costs associated with running your business.

 

Key Takeaways

  • If you use a portion of your home regularly and exclusively for your business, you may be able to claim the home office deduction. The deduction can be based on the square footage of your office.
  • Self-employed people can deduct the costs associated with their business use of a personal vehicle. This can be done through the standard mileage rate method or by tracking actual expenses related to business usage.
  • Contributions to a SEP IRA, SIMPLE IRA, or other retirement plan designed for small business owners are generally deductible up to the annual contribution limit for that type of plan. So, making contributions to these plans can not only help you save for retirement but also reduce your current taxable income.
  • Self-employed people can generally deduct 100% of the health insurance premiums they pay for themselves, their spouses, and dependents, as long as they’re not eligible for coverage through an employer-sponsored health plan.

Your business and deductions

There’s something special about being your own boss. You're more motivated. You have greater control over your career. There’s more flexibility. All these factors and more can make self-employment extremely rewarding.

But being self-employed isn’t all roses and sunshine. You’re going to run up against plenty of things you’re probably not familiar with – such as business taxes.

As with other business expenses, taxes are going to eat into your profits. So, you have to proactively manage your business’s tax liability to make sure it’s as low as possible.

Fortunately, if you’re self-employed and operating a sole proprietorship, there are several tax deductions that can cut your business tax bill and protect your bottom line. You’ll want to become familiar with these write-offs as you build your business. If you qualify, they can save you a lot of money.

To get you started, here’s a rundown of 20 common tax deductions available to self-employed sole proprietors (plus a list of some other deductible expenses you might have).

1. Start-up costs deduction

Many self-employed people spend money to get their business going before they even start operating their business. For example, you might pay for market research, training new employees, travel, consulting fees, advertising, registration fees, and the like before you open for business.

These business start-up costs are deductible for the tax year you start operations – to a point. If you’re operating your business as a sole proprietor, you can only deduct up to $5,000 of business start-up costs. However, the $5,000 cap is reduced on a dollar-for-dollar basis if your total start-up costs exceed $50,000. So, for example, if you have $53,000 in start-up expenses, you can only deduct $2,000 of those expenses ($5,000 - ($53,000 - $50,000) = $2,000).

This deduction is claimed as an “other expense” on Schedule C of your Form 1040.

Any start-up costs that aren’t deductible in the year you start your business can be gradually written off over a 15-year period.

[Note: If you form a corporation, you can also deduct up to $5,000 of “organizational costs” to set up the corporation as a legal entity such as amounts paid for temporary directors, organizational meetings, state incorporation fees, and legal services. The $5,000 limit is phased-out in the same manner as the limit for start-up costs.]

2. Home office deduction

Many self-employed people work out of their home. Perhaps you have a den or extra bedroom that you converted into an office. If that’s the case, you might be able to claim the home office deduction on Schedule C.

This deduction covers expenses related to any part of your home used "regularly and exclusively" as your principal place of business. If you qualify, you can deduct the cost of insurance, utilities, rent, mortgage interest, property taxes, repairs, maintenance, and other expenses related to the business use of your home.

There are two ways to calculate the home office deduction. You pick which one works best for you.

The first method is to deduct the actual expenses related to your home office. Basically, this is your total home expenses multiplied by a percentage representing the portion of your home used for business. For example, if your home office takes up 10% of your house, then you can deduct 10% of your total home expenses. Use Form 8829 to calculate your deduction if you use this method.

If you don’t want to keep track of all your home expenses, you can go with the “simplified method” of calculating the home office deduction. In that case, you simply multiply the square footage of your home used for business (up to 300 sq. ft.) by $5. So, if your home office is 100 square feet, then you can deduct $500 (100 x $5 = $500).

3. Rent expense deduction

If you don’t have space in your home for an office, or you just want to keep your home and work spaces separate, you can generally deduct the cost of renting office space. But there are a couple of conditions and restrictions.

First, you can’t deduct rent if you have (or will have) an ownership interest in the rented property such as having an equity interest or title to the property. So, for example, you can’t deduct payments made under a conditional sales contract as a rent expense.

You also can’t deduct “unreasonable” rent. Rent is generally unreasonable if it’s higher than market value or a professional appraisal. This sometimes becomes an issue if you get a sweetheart deal on property leased by a relative. But even in that situation, rent is still considered to be reasonable if you’re paying the same amount that a stranger would pay to rent the property.

If you pay rent in advance, you can only deduct the amount that applies to rent for the tax year. You’ll have to wait to deduct advance payments until the tax year for which the rent applies.

Sole proprietors claim the deduction for rent on Schedule C.

4. Health insurance deduction

A self-employed person can generally deduct premiums paid for health insurance for his or her family. The self-employed health insurance deduction is claimed on Schedule 1 of Form 1040, not Schedule C.

The insurance must be established for your business. But if you’re filing Schedule C, the policy can be in either your name or the business’s name.

You can’t claim the deduction for health insurance premiums paid for any month that you were eligible for health insurance through your or a family member's employer.

The deduction also can be taken for the cost of long-term care insurance. However, the deduction is capped at an amount that’s based on your age at the end of the tax year. For the 2024 tax year, the deduction for long-term care insurance is limited as follows (based on your age on December 31, 2024):

  • $470 if you’re 40 or younger ($480 for 2023)
  • $880 if you’re 41 to 50 ($890 for 2023)
  • $1,760 if you’re 51 to 60 ($1,790 for 2023)
  • $4,710 if you’re 61 to 70 ($4,770 for 2023)
  • $5,880 if you’re 71 or older ($5,960 for 2023)

You must file Form 7206 if you’re using amounts paid for long-term care insurance to calculate the deduction.

5. Retirement plan contributions deduction

There’s another Schedule 1 tax deduction designed specifically for self-employed people – it’s for contributions to certain types of retirement plans.

The deduction applies to funds that sole proprietors and other self-employed people put in the following retirement accounts for themselves:

  • Simplified Employee Pension (SEP) IRAs
  • Savings Incentive Match Plan for Employees (SIMPLE) IRAs
  • Solo 401(k) plans

Money contributed to these plans for an employee can be deducted as a business expense on Schedule C.

However, whether you’re deducting retirement plan contributions for yourself or your employees, the deduction is capped by the annual contribution limit for the particular type of plan.

6. Car expense deduction

The costs associated with driving your personal car, truck, or van for local business use can be deductible on Schedule C. This includes things like driving your own car to a client's office for a meeting or to a store to pick up supplies.

You can use either the standard mileage rate or your actual expenses to calculate the deduction. The standard mileage rate is 67¢ per mile driven for business for the 2024 tax year (up from 65.5¢ per mile for 2023). You can add any parking fees or tolls to that amount. However, you can’t use the standard mileage rate if you use five or more vehicles in your business (such as having a fleet of vehicles).

With the actual expense method, you deduct the actual amount paid for gas, oil, tires, insurance, repairs, lease payments, parking, tolls, garage rental, and other expenses for operating your car. If you use your car, truck, or van for both business and personal driving, you have to divide your expenses between business and personal use based on miles driven for each purpose. You can then deduct the business expenses, but not the personal ones.

7. Business travel deduction

Self-employed people who must travel away from home for business can write off certain related expenses. However, to be deductible, travel expenses must be ordinary (common and accepted in your trade or business) and necessary (helpful and appropriate for your business).

Common deductible travel expenses include:

  • airfare, bus, train, or car expenses (if you use your own car for travel, you can deduct actual expenses or use the standard mileage rate as described above)
  • taxi, commuter bus, and limousine fees
  • hotel or motel costs
  • meals (see the next section for details)
  • tips and fees for porters, baggage carriers, hotel staff, and other similar people (you can deduct $5 per day instead of your actual tips and fees if you don’t claim a deduction for meals that day)
  • dry cleaning, laundry, and phone calls while away on business

If other people are traveling with you (including family members), you can’t deduct travel expenses for them unless they’re your employee.

Travel expenses are reported on Schedule C.

8. Business meals deduction

You can generally deduct 50% of the cost of meals that are directly related to your business or happen during a business trip. However, all the following must be true in order for the meal to be deductible:

  • the meal expense is ordinary and necessary for your business
  • the meal isn’t lavish or extravagant under the circumstances
  • you or your employee are present at the meal
  • the meal is provided to you or a current or potential business customer, client, consultant, or similar business contact
  • the meal is purchased separately from any related entertainment, or the cost of the meal is stated separately from the cost of any entertainment on one or more bills, invoices, or receipts

If you’re traveling for business, you can deduct 50% of either your actual meal expenses or the standard meal allowance.

The standard meal allowance for travel in the continental U.S. is equal to the General Services Administration’s per diem rates, which depend on where and when you travel. Those rates can be found on the GSA’s website. The Department of Defense sets rates for Alaska, Hawaii, U.S. territories, and U.S. possessions, while the State Department sets them for foreign countries.

In addition, the 50% limit doesn’t apply in certain cases. For example, if you’re self-employed, the limit doesn’t apply if all the following requirements are satisfied:

  • you have meal expenses as an independent contractor
  • your customer or client reimburses you or gives you an allowance for the meal expenses in connection with services you perform
  • you provide adequate records of the meal expenses to your customer or client

You also aren’t subject to the 50% limit if your meal expenses are for recreational, social, or similar activities such as a holiday party or a summer picnic. In addition, the limit is waived if you sell meals to the public or provide them as a means of advertising or promoting goodwill in the community such as distributing free food and beverages.

9. Self-employment tax deduction

If you work for someone else, your employer will withhold your share of Social Security and Medicare taxes (FICA taxes) from each paycheck and send them to the IRS on your behalf. But if you’re self-employed, you generally have to pay both the employer’s and employee’s share of those taxes yourself. This tax is known as the “self-employment tax.”

The self-employment tax rate is 15.3%. That includes 12.4% for Social Security and 2.9% for Medicare. You’ll owe an additional 0.9% Medicare tax if your total wages, compensation, and self-employment income for the year exceed $250,000 for joint filers, $125,000 for married people filing separate returns, or $200,000 for all other people.

But here’s the good news: You can deduct 50% of the self-employment tax you must pay. The deduction is first reported on Schedule SE, which is also the form used to calculate your self-employment tax. The deduction is then claimed on Schedule 1 of Form 1040.

10. Qualified business income deduction

The qualified business income (QBI) deduction generally lets qualified self-employed people write off up to 20% of the combined total of their business’s income, gains, deductions, and losses. (It’s sometimes called the Section 199A deduction, after the tax code section authorizing the tax break.)

There are important limitations, though. For example, if your business income exceeds a certain amount, the QBI deduction is reduced (possibly to $0) for certain service-oriented business owners like doctors, lawyers, and accountants. The deduction might be limited for other businesses based on the W-2 wages they pay to employees and the basis of certain property they own. These limitations can make calculating the QBI deduction a bit tricky.

You must use either Form 8995 or Form 8995-A to calculate the QBI deduction. The deduction amount is then claimed directly on Form 1040 rather than reported on Schedule C or Schedule 1.

Note, however, that the deduction is currently set to expire after the 2025 tax year.

11. Work-related education deduction

Self-employed people who want to further their education might be able to deduct the cost of tuition, books, and related expenses as a business expense on Schedule C. However, to deduct your education expenses, the courses you take must either be:

  • required to keep your present salary, status, or job such as continuing education classes and serve an actual business purpose
  • needed to maintain or improve skills needed in your present work

But even if your coursework meets one or both of the requirements above, the costs aren’t deductible if the classes are either needed to meet the minimum educational requirements of your present trade or business, or part of a program of study that will qualify you for a new trade or business.

If your courses meet these requirements, you can deduct:

  • tuition, books, supplies, lab fees, and similar items
  • certain transportation and travel costs related to your classes
  • other related expenses such as costs related to research when writing a paper

Any personal expenses aren’t deductible, though. For instance, you can't deduct the dollar value of vacation time taken to attend class.

You can also deduct any ordinary and necessary costs of education and training of your employees. These are also reported on Schedule C.

 

TurboTax Tip:

If you’re furthering your education, you might also qualify for the American Opportunity tax credit or Lifetime Learning credit. However, you can’t “double dip.” So, any educational expenses you deduct as a business expense on Schedule C can’t be used to claim these tax credits (and vice versa).

 

12. Cost of goods sold deduction

The deduction for the “cost of goods sold” allows businesses to reduce their taxable income by accounting for expenses related to the production or purchase of any products they sell. The deduction is calculated and reported on Schedule C.

Basically, the deduction is computed by adding the cost of inventory at the beginning of the tax year to the cost of any inventory purchases or production costs during the year, and then subtracting the ending inventory at the close of the tax year.

In most cases, you’ll need to take an inventory at the beginning and end of your tax year in order to deduct the cost of goods you sold. However, if you’re considered a “small business taxpayer,” you don’t have to keep an inventory (although you must still use a method of accounting for inventory that clearly reflects income). For the 2024 tax year, you qualify as a small business taxpayer if your average annual gross receipts for the three prior tax years is $30 million or less ($29 million or less for 2023) and you’re not considered a tax shelter.

13. Bad debts deduction

If someone who owes you money won’t pay up, you might be able to deduct the amount owed to you as a bad debt. However, the deduction is only available if you included the amount you’re owed in your gross income for the current or a previous tax year.

The debt must also be considered a business bad debt in order to deduct it as a business expense on Schedule C. To be treated as a business bad debt, a worthless debt must be either:

  • created or acquired in your business
  • closely related to your business when it became partly or totally worthless

A debt is closely related to your business if your primary reason for incurring the debt was a business reason.

Business bad debts often result from credit sales to customers. Loans to suppliers, clients, employees, or distributors can also result in business bad debts.

14. Depreciation and Section 179 expense deduction

If you acquire certain business property that’s expected to last more than one year, you generally can’t deduct the entire cost as a business expense in the year you receive it. Instead, you have to deduct it little-by-little over the course of the property’s expected useful life. This method of deducting the cost of business property is called depreciation.

There are two special rules that can result in either a greater depreciation deduction or a full deduction for the cost of property acquired during the tax year. For the 2024 tax year, the first rule – dubbed “bonus depreciation” – permits 60% of the property’s cost to be deducted if it’s acquired in 2024. Standard depreciation deductions are allowed for the remaining cost basis.

Note, however, that bonus depreciation is being phased out. The percentage rate used to calculate the immediate deduction was 100% for the 2022 tax year, but it drops 20% each year until it’s 0% for the 2027 tax year.

The second special rule is called Section 179 expensing (the name comes from the tax code section establishing the rule). This rule lets you deduct part or all of the cost of certain property you buy during the tax year for use in your business. Again, any remaining costs are depreciated as usual.

For the 2024 tax year, the most you can deduct under the Section 179 expensing rule is generally $1,220,000 ($1,160,000 for 2023). However, this limit is reduced on a dollar-for-dollar basis to the extent the property’s cost exceeds $3,050,000 ($2,890,000 for 2023). In addition, the total cost you can deduct each year after you apply these dollar limits can’t be more than your business’s taxable income for the year.

You might have to use Form 4562 to calculate your deduction. In any event, sole proprietors ultimately report the deduction on Schedule C.

15. Charitable gifts deduction

As a self-employed person, you might want to make a charitable donation or volunteer your time in the name of your business. In addition to the personal rewards, it might be good for business, too.

You’ll also be happy to know that you might be able to claim a charitable deduction for your generosity. But if you’re operating your business as a sole proprietor, you must claim the deduction in the same manner as any other person. That means you must claim it as an itemized deduction on Schedule A of Form 1040 (instead of on Schedule C or Schedule 1), which also means you can’t also claim the Standard Deduction.

There are also certain income-based restrictions that can limit the amount of your charitable deduction. For example, cash contributions can’t be more than 60% of your adjusted gross income. The enhanced deduction for businesses that donate food is also limited to 15% of your business net income.

On the other hand, if you volunteer your time for a charity, any unreimbursed out-of-pocket expenses might be deductible. For example, if you bake a cake for a charity fundraiser, you can deduct the cost of the ingredients (although you can’t deduct the value of your time).

You can also deduct travel expenses if you drive your own car as a volunteer. In that case, you can deduct either of:

  • your actual expenses for gas, oil, and the like
  • 14¢ per mile, the standard mileage rate for charitable expenses

Tolls and parking fees are deductible, too.

16. Employee’s pay deduction

If you hire employees, you can deduct their salary and wages as a business expense on Schedule C. However, as a sole proprietor, you can’t deduct your own salary because you’re not considered an employee of the business.

To be deductible, the wages must be both reasonable and for the performance of services. The pay itself can also be in cash, property, or services.

Deductible pay can include bonuses, vacation and sick pay, commissions, education expenses, fringe benefits, reimbursements for employee business expenses, and the like.

You can’t deduct salaries and wages that are deducted elsewhere on your tax return. You also must subtract the amount of any employment-related tax credits you claim (like the work opportunity tax credit) when calculating the deduction.

17. Business insurance deduction

There are many different types of insurance you can buy to protect your business. Fortunately, the premiums you pay for most business insurance policies are deductible on Schedule C. In fact, premium payments for the following types of business-related insurance are generally deductible:

  • fire, theft, flood, or similar insurance
  • credit insurance covering losses from business bad debts
  • group hospitalization and medical insurance for employees (including long-term care insurance)
  • liability insurance
  • malpractice insurance
  • workers' compensation insurance
  • overhead insurance covering business expenses if you're on disability
  • car and other vehicle insurance covering vehicles used in your business
  • life insurance covering your employees
  • business interruption insurance

Plus, as noted earlier, self-employed people can deduct their health insurance premiums.

However, you can’t deduct payments for self-insurance reserve funds, policies covering lost earnings due to sickness or disability, certain life insurance and annuities, or insurance to secure a loan.

18. Supplies and materials deduction

Supplies and materials used in manufacturing are included in the calculation of your cost of goods sold (see above). However, other supplies and materials used in your business are also deductible on Schedule C as a business expense. This includes general office supplies, such as pens, paperclips, printers, envelopes, postage stamps, and the like.

You generally can only deduct the cost of supplies and materials if you use them in your business during the tax year (unless you deducted them in a prior year). However, if you have incidental materials and supplies on hand for which you don’t keep an inventory or record of their use, you can still deduct the cost of the materials and supplies you actually purchased during the tax year.

The cost of books, professional instruments, equipment, and similar items if you normally use them within a year. But if their usefulness extends well beyond a year, you generally have to take depreciation deductions for them over several years.

19. Interest expense deduction

Self-employed people generally can deduct interest paid during the tax year on debts related to their business. Interest relates to your business if the loan proceeds are used for a business expense. It doesn’t matter what type of property secures the loan.

However, you can only deduct interest as a business expense on Schedule C if all of the following are met:

  • you’re legally liable for payment of the debt
  • both you and the lender intend the debt to be repaid
  • you and the lender have a true debtor-creditor relationship

This can include mortgage interest related to real property used in your business or credit card interest for a company card.

Interest related to a personal loan or debt isn’t deductible as a business expense, though.

20. Taxes and license fees deduction

Taxes paid by your business might be deductible. As noted earlier, you can deduct 50% of your federal self-employment tax on Schedule 1. Plus, write-offs are also available on Schedule C for self-employed sole proprietors paying:

  • state taxes on gross income (as opposed to net income) directly attributable to your business
  • sales taxes imposed on you as the seller of goods or services
  • real estate and personal property taxes on business assets
  • Social Security and Medicare taxes withheld from your employees’ wages and paid to the IRS (don’t deduct any amount claimed as a credit for Social Security and Medicare taxes paid on employee tips)
  • unemployment taxes paid to the IRS or to a state unemployment insurance fund or disability benefit fund if they’re considered taxes under state law
  • excise taxes that are ordinary and necessary expenses of carrying on your business
  • federal highway use taxes

In addition, state and local licenses and regulatory fees paid by your business are generally deductible, too. However, some licenses (liquor licenses for example) might have to be amortized and deducted over several years.

You can’t deduct every tax payment or licensing fee as a business expense, though. For instance, you can’t deduct:

  • income taxes
  • estate and gift taxes
  • property taxes assessed to pay for improvements such as paving and sewers
  • property taxes on your home or personal property
  • sales taxes on property purchased for use in your business (these taxes are part of the cost of the property)
  • fuel taxes on gasoline, diesel fuel, and other motor fuels you use in your business
  • sales taxes imposed on a buyer that you were required to collect and pay
  • other taxes and license fees not related to your business

Other business expense deductions

The deductible business expenses listed above can all save you money. But it’s not an all-inclusive list – there are other costs a self-employed person operating a sole proprietorship can deduct.

If you’re self-employed, here are a few more common costs you might be able to write-off:

  • advertising
  • bank fees
  • commissions and fees
  • contract labor
  • depletion
  • employee benefit programs
  • legal and professional services
  • pension and profit-sharing plans
  • removing barriers to individuals with disabilities and the elderly
  • repairs and maintenance
  • research and experimentation
  • trademarks or trade names
  • utilities

Let a local tax expert matched to your unique situation get your taxes done 100% right with TurboTax Live Full Service. Your expert will uncover industry-specific deductions for more tax breaks and file your taxes for you. Backed by our Full Service 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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TurboTax 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 Terms of Service for details.

  • TurboTax Audit Support Guarantee – Business Returns. If you receive an audit letter from the IRS or State Department of Revenue on your 2023 TurboTax business return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Support Center, for audited business returns filed with TurboTax for the current 2023 tax year. 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 for this question-and-answer support, we will refund the applicable TurboTax Live Business or TurboTax Live Full Service Business federal and/or state purchase price paid. Additional terms and limitations apply. See Terms of Service for details.

TURBOTAX ONLINE/MOBILE PRICING

  • Start for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. For most paid TurboTax online and mobile offerings, you may start using the tax preparation features without paying upfront, and pay only when you are ready to file or purchase add-on products or services. Actual prices for paid versions are determined based on the version you use and the time of print or e-file and are subject to change without notice. Special discount offers may not be valid for mobile in-app purchases. Strikethrough prices reflect anticipated final prices for tax year 2023.

  • TurboTax Free Edition:TurboTax Free Edition ($0 Federal + $0 State + $0 To File) is available for those filing Simple Form 1040 returns only (no forms or schedules except for the Earned Income Tax Credit, Child Tax Credit and student loan interest), as detailed in the TurboTax Free Edition disclosures. Roughly 37% of taxpayers qualify. Offer may change or end at any time without notice.

  • TurboTax Live Assisted Basic Offer: Offer only available with TurboTax Live Assisted Basic and for those filing Form 1040 and limited credits only. Roughly 37% of taxpayers qualify. Must file between November 29, 2023 and March 31, 2024 to be eligible for the offer. Includes state(s) and one (1) federal tax filing. Intuit reserves the right to modify or terminate this TurboTax Live Assisted Basic Offer at any time for any reason in its sole and absolute discretion. If you add services, your service fees will be adjusted accordingly. If you file after 11:59pm EST, March 31, 2024, you will be charged the then-current list price for TurboTax Live Assisted Basic and state tax filing is an additional fee. See current prices here.

  • Full Service $100 Back Offer: Credit applies only to federal filing fees for TurboTax Full Service and not returns filed using other TurboTax products or returns filed by Intuit TurboTax Verified Pros. Excludes TurboTax Live Full Service Business and TurboTax Canada products. Credit does not apply to state tax filing fees or other additional services. If federal filing fees are less than $100, the remaining credit will be provided via electronic gift card. Intuit reserves the right to modify or terminate this offer at any time for any reason in its sole discretion. Must file by April 15, 2024 11:59 PM ET.

  • TurboTax Full Service - Forms-Based Pricing: “Starting at” pricing represents the base price for one federal return (includes one W-2 and one Form 1040). Final price may vary based on your actual tax situation and forms used or included with your return. Price estimates are provided prior to a tax expert starting work on your taxes. Estimates are based on initial information you provide about your tax situation, including forms you upload to assist your expert in preparing your tax return and forms or schedules we think you’ll need to file based on what you tell us about your tax situation. Final price is determined at the time of print or electronic filing and may vary based on your actual tax situation, forms used to prepare your return, and forms or schedules included in your individual return. Prices are subject to change without notice and may impact your final price. If you decide to leave Full Service and work with an independent Intuit TurboTax Verified Pro, your Pro will provide information about their individual pricing and a separate estimate when you connect with them.

  • Pays for itself (TurboTax Premium, formerly Self-Employed): Estimates based on deductible business expenses calculated at the self-employment tax income rate (15.3%) for tax year 2022. Actual results will vary based on your tax situation.

TURBOTAX ONLINE/MOBILE

  • Anytime, anywhere: Internet access required; standard data rates apply to download and use mobile app.

  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

  • Get your tax refund up to 5 days early: Individual taxes only. When it’s time to file, have your tax refund direct deposited with Credit Karma Money™, 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. 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.

  • For Credit Karma Money (checking account): Banking services provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply per account.
  • Fees: Third-party fees may apply. Please see Credit Karma Money Account Terms & Disclosures for more information.

  • Pay for TurboTax out of your federal refund or state refund (if applicable): Individual taxes only. Subject to eligibility requirements. Additional terms apply. A $40 Refund Processing 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 an 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.
  • Tax Advice, Expert Review and TurboTax Live: Access to tax advice and Expert Review (the ability to have a Tax Expert review and/or sign your tax return) is included with TurboTax Live Assisted or as an upgrade from another version, and available through December 31, 2024. Intuit will assign you a tax expert based on availability. Tax expert and CPA availability may be limited. Some tax topics or situations may not be included as part of this service, which shall be determined in the tax expert’s sole discretion. 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: Handoff 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. The ability to retain the same expert preparer in subsequent years will be based on an expert’s choice to continue employment with Intuit. 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. Unlimited access to TurboTax Live tax 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 Live Full Service – Qualification for Offer: Depending on your tax situation, you may be asked to answer additional questions to determine your qualification for the Full Service offer. Certain complicated tax situations will require an additional fee, and some will not qualify for the Full Service offering. These situations may include but are not limited to multiple sources of business income, large amounts of cryptocurrency transactions, taxable foreign assets and/or significant foreign investment income. Offer details subject to change at any time without notice. Intuit, in its sole discretion and at any time, may determine that certain tax topics, forms and/or situations are not included as part of TurboTax Live Full Service. Intuit reserves the right to refuse to prepare a tax return for any reason in its sole discretion. Additional limitations apply. See Terms of Service for details.

  • TurboTax Live Full Service - File your taxes as soon as today: TurboTax Full Service Experts are available to prepare 2023 tax returns starting January 8, 2024. Based on completion time for the majority of customers and may vary based on expert availability. The tax preparation assistant will validate the customer’s tax situation during the welcome call and review uploaded documents to assess readiness. 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 -- Verified Pro -- “Local” and “In-Person”: Not all feature combinations are available for all locations. "Local" experts are defined as being located within the same state as the consumer’s zip code for virtual meetings. "Local" Pros for the purpose of in-person meetings are defined as being located within 50 miles of the consumer's zip code. In-person meetings with local Pros are available on a limited basis in some locations, but not available in all States or locations. Not all pros provide in-person services.

  • Smart Insights: Individual taxes only. Included with TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits, and is available through 11/1/2024. Terms and conditions may vary and are subject to change without notice.

  • My Docs features: Included with TurboTax Deluxe, Premium TurboTax Live, TurboTax Live Full Service, or with PLUS benefits and is available through 12/31/2025. 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, TurboTax Live Full Service customers and access to up to the prior seven years of tax returns we have on file for you is available through 12/31/2025. Terms and conditions may vary and are subject to change without notice.

  • Easy Online Amend: Individual taxes only. Included with TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits. Make changes to your 2023 tax return online for up to 3 years after it has been filed and accepted by the IRS through 10/31/2026. Terms and conditions may vary and are subject to change without notice. For TurboTax Live Full Service, your tax expert will amend your 2023 tax return for you through 11/15/2024. After 11/15/2024, TurboTax Live Full Service customers will be able to amend their 2023 tax return themselves using the Easy Online Amend process described above.

  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2022 TurboTax products.

  • #1 online tax filing solution for self-employed: Based upon IRS Sole Proprietor data as of 2023, tax year 2022. Self-Employed defined as a return with a Schedule C 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 & either e-filed or printed, not including returns prepared through desktop software or FFA prepared returns, 2022.

  • CompleteCheck: Covered under the TurboTax accurate calculations and maximum refund guarantees. Limitations apply. See Terms of Service for details.
  • TurboTax Premium Pricing Comparison: Cost savings based on a comparison of TurboTax product prices to average prices set forth in the 2020-2021 NSA Fees-Acct-Tax Practices Survey Report.

  • 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: Rewards good for up to 20 friends, or $500 - see official terms and conditions for more details.

  • Refer your Expert (Intuit’s own experts): Rewards good for up to 20 referrals, or $500 - see official terms and conditions for more details.

  • Refer your Expert (TurboTax Verified Independent Pro): Rewards good for up to 20 referrals, or $500 - see official terms and conditions for more details.

  • Average Refund Amount: Sum of $3140 is the average refund American taxpayers received based upon IRS data date ending 2/17/23 and may not reflect actual refund amount received.

  • Average Deduction Amount: Based on the average amount of deductions/expenses found by TurboTax Self Employed customers who filed expenses on Schedule C in Tax Year 2022 and may not reflect actual deductions found.

  • 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-C), Trust/Estates (Form 1041), Multiple state filings, Tax Exempt Entities/Non-Profits, Entities electing to be treated as a C-Corp, Schedule C Sole proprietorship, Payroll, Sales tax, Quarterly filings, and Foreign Income. TurboTax Live Assisted Business is currently available only in AK, AZ, CA, CO, CT, DE, FL, GA, 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 a fee, by TaxResources, Inc., dba Tax Audit. See Membership Agreements at https://turbotax.intuit.com/corp/softwarelicense/ 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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