Mileage vs. Standard deduction

I have a question that some may know. I use Turbo Tax and by the time I put in my mileage, expenses, etc then it said that my standard deduction was the better fit. Is there a better place to put this, so it comes off the income of mystery shopping? I guess what I am saying: Is the way you are able to deduct these expenses and still claim the standard deduction? Do I need to look at it with a fresh set of eyes?

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First, are you putting your business revenue and expenses into Schedule C as you should? You can definitely use Schedule C and still claim the Standard Tax Deduction which is $12,950 for single filers, $25,900 for joint filers, or $19,400 for heads of household.

I am concerned that you may be confusing the standard mileage rate deduction (which is used on Schedule C) with the Standard Deduction which is used on Form 1040.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008

FOR SURE, use Schedule C for MS income AND for mileage deductions used to do your MS work. Then, when you get to Schedule 1040 go through the routine of deciding whether to take the standard income deduction or to itemize NON-business deductions (state taxes, mortgage interest, medical expenses, etc.) there.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

I used Turbo Tax for the first time last year however due to the pandemic my ms income was not terrific so I just used the regular Premier of Turbo Tax. You need to use the Home and Business Turbo Tax (it has a different name depending if you are using the online version, the cd version or the download version of Turbo Tax). You can call them or look at a comprehensive list of their offerings to see which versions you need to use in order to access schedule C. Unfortunately you have to pay a bit extra to get a Turbo tax that has schedule C in it. Some independent contractors make very little money so it does not sit well with me that Turbo Tax charges more for a schedule C, Basic, Delux and Premier do not have schedule C. But you can pay a bit more and upgrade what you already bought rather than purchasing a whole new one.

Thanks everyone! I was confused! I have used Schedule C in the past, and I am not sure why it did not pick it up correctly this time. I will fix it.

yes, just answer that you have business income and it will pick it up from there

One last question, I swear. I list the name description as Mystery shopping and group all companies together under that heading. Should I be listing them separately? I do not make a lot from each one individually.

I list them as one description too.

You are right. Mystery shopping is your business, and all fees should be reported on the single Schedule C for that business. You can add 1099-NECs separately, or you can just report the lump some from all MSCs as miscellaneous business income. Don't forget to deduct mileage and other expenses.

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Mileage vs. Standard deduction

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