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Help!! Turbotax---Categorizing Expenses

Miscellaneous Expenses: This category can be used for any other business-related expenses that don't fit into the other categories mentioned. In summary, when categorizing your expenses for your PC business taxes, you should consider using the "Inventory (Cost of Goods Sold)" category for products purchased for show and use, the "Supplies" category for groceries used for practicing recipes, and other applicable categories such as "Home office" and "Meals and Entertainment." It is important to keep track of all expenses and consult with a tax professional or use tax software, such as TurboTax, to ensure accurate reporting.
E
ericadboone
Gold Member
44
2010 was my first year with PC, so this is my first go-around on taxes for this. I am using TurboTax and I just don't know what categories to put my expenses into. Specifically products that I've purchased to show and use and groceries I've purchased for practicing recipes!

These are the options given:
Home office
Vehicles
Assets (Depreciation)
Inventory (Cost of Goods Sold)
Supplies
Communication
Taxes and Licenses
Advertising
Business Travel
Meals and Entertainment
Insurance Payments
Interest Payments
Rental Payments
Legal and Professional Fees
Commissions
Contract Labor
Repairs and Maintenance
Utilities
Other Office expenses
Miscellaneous Expenses

I thought supplies would be good for the products but this is the description given for that "Pens, paper, calendars, data CDs; other supplies related to copiers, printers, mailing"....doesn't sound right.

Meals and Entertainment for groceries????
 
Are you using Home & Business Edition?P3 will give you a printout of expenses. Enter that in the appropriate place in the software.
 
Ugh, I just don't know...Thanks in advance for any help!Here are some suggestions for which categories to put your expenses into:1. Products purchased for show and use: These would fall under the "Inventory (Cost of Goods Sold)" category. This includes any products you purchased to display or demonstrate at events or parties, as well as any products you gave away as samples.2. Groceries for practicing recipes: These would fall under the "Supplies" category. This includes any ingredients or supplies you purchased specifically for practicing and perfecting your recipes.3. Home office: If you have a designated space in your home that is used exclusively for your PC business, you can deduct a portion of your home expenses (e.g. rent/mortgage, utilities) as a home office expense.4. Vehicles: If you use your personal vehicle for PC business purposes (e.g. delivering products, attending events), you can deduct a portion of your vehicle expenses, such as gas, maintenance, and insurance.5. Communication: This category includes expenses related to phone, internet, and postage for your PC business.6. Advertising: This includes any costs for advertising and promoting your PC business, such as flyers, business cards, and online ads.7. Business Travel: If you traveled for PC business purposes (e.g. attending a conference or training event), you can deduct expenses such as airfare, hotel, and meals.8. Meals and Entertainment: This category can be used for any meals or entertainment expenses you incurred while conducting business (e.g. taking a potential customer out to lunch).9. Insurance Payments: If you have insurance related to your PC business (e.g. liability insurance), you can deduct these expenses.10. Legal and Professional Fees: This includes any fees paid to lawyers, accountants, or other professionals for services related to your PC business.11. Commissions: If you pay commissions to others for sales they make on your behalf, you can deduct these expenses.12. Contract Labor: This category can be used for any payments made to contractors or freelancers for services related to your PC business.13. Repairs and Maintenance: This includes expenses for repairs and maintenance of equipment and supplies used in your PC business.14. Utilities: If you use utilities (e.g. electricity, water) for your PC business, you can deduct a portion of these expenses.15. Other Office expenses: This category can
 

1. How do I categorize my expenses in TurboTax?

To categorize your expenses in TurboTax, follow these steps:
1. Open your tax return and click on the "Deductions & Credits" tab.
2. Click on "Edit/Add" next to the "Expenses" section.
3. Scroll down to "Other Common Expenses" and click on "Start" next to "Other Expenses".
4. Click on "Add Expense" and select the category that best fits your expense.
5. Enter the amount and a brief description of the expense.
6. Click "Done" to save the expense. Repeat these steps for each expense you want to categorize.
7. Once you have categorized all your expenses, click "Done with Expenses" to return to your tax return.

2. Can I edit the categories for my expenses in TurboTax?

Yes, you can edit the categories for your expenses in TurboTax. To do so, follow these steps:
1. Open your tax return and click on the "Deductions & Credits" tab.
2. Click on "Edit/Add" next to the "Expenses" section.
3. Click on the expense you want to edit.
4. Click on "Edit" next to the category name.
5. Select the new category for your expense from the drop-down menu.
6. Click "Done" to save the changes.
7. Repeat these steps for each expense you want to edit.
8. Once you have edited all your expenses, click "Done with Expenses" to return to your tax return.

3. How do I add a new expense category in TurboTax?

To add a new expense category in TurboTax, follow these steps:
1. Open your tax return and click on the "Deductions & Credits" tab.
2. Click on "Edit/Add" next to the "Expenses" section.
3. Scroll down to "Other Common Expenses" and click on "Start" next to "Other Expenses".
4. Click on "Add Expense" and select "Add a new category".
5. Enter the name of the new category and click "Save".
6. Click on the new category to add an expense under it.
7. Enter the amount and a brief description of the expense.
8. Click "Done" to save the expense. Repeat these steps for each expense you want to categorize under the new category.
9. Once you have categorized all your expenses, click "Done with Expenses" to return to your tax return.

4. How do I delete an expense category in TurboTax?

To delete an expense category in TurboTax, follow these steps:
1. Open your tax return and click on the "Deductions & Credits" tab.
2. Click on "Edit/Add" next to the "Expenses" section.
3. Click on the expense you want to delete.
4. Click on "Delete" next to the category name.
5. Click "Yes" to confirm the deletion.
6. Repeat these steps for each expense category you want to delete.
7. Once you have deleted all the categories you want to, click "Done with Expenses" to return to your tax return.

5. How do I view my categorized expenses in TurboTax?

To view your categorized expenses in TurboTax, follow these steps:
1. Open your tax return and click on the "Deductions & Credits" tab.
2. Click on "Edit/Add" next to the "Expenses" section.
3. Scroll down to "Other Common Expenses" and click on "Start" next to "Other Expenses".
4. All your categorized expenses will be listed under the respective categories.
5. You can click on each expense to view the amount and description.
6. To view the total amount for each category, click on the category name.
7. Repeat these steps to view all your categorized expenses.
8. Once you have viewed all your expenses, click "Done with Expenses" to return to your tax return.

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