Received a 1099 and would like to know what I can write off. Clothes, heels, makeup, etc? Do I need all of the receipts?
Thanks for your help
I'm no tax expert, but I don't think you can write off any of those things. Uniforms can be written off, but that term is taken literally and does not mean whatever clothing is appropriate for any given line of work. I can't deduct the cost of suits, ties, etc. even though I need to have them, and I don't think your outfits would be treated differently.
To specify more...Indicates non-employee..When getting my taxes done, I indicate that I am a Independant Contractor Consultant...;> Prior to getting taxes done, just wanted to know if anything what I could write off.
...you should also talk to a CPA or tax specialist to learn what other expenses you might be able to deduct. Some items that aren't deductible from your federal taxes may be deductible from your state taxes, and vice versa.
A 1099 is given for any income over 600.00 in a calender year. You can try and write off anything..but the question is: audit exposure and reason. You could expose allot here..like accounts.. where you deposit money if you do..etc. What would you justify as to your profession..and I assume you are reporting all your income ? See my drift.
pay the taxes misslanes income
Your question is very broad but as mentioned above, normally clothing that can also be worn outside of the work environment does not constitute a tax deduction.
You do have a number of possibilities however.
1) Auto expenses using the standard mileage or actual expenses method. Usually newer cars yield greater expenses.
2) Possibly could deduct expenses for office in home.
3) I would say lotions and condoms and thse types of "office supplies" would be appropriate.
4) Telephone usage and computer equipment for office needs.
5) Cost of advertising and website development and maintenance etc.
The list of possibilities goes on but once again without knowing the particulars of your situation, it is hard to advise you.
I have included URL's to the IRS 1040 Schedule C and its instruction. This is the form on which most self-employment income and the related expenses are reported. The form in particular lists a variety of expenses to consider.
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Good Luck,
TOMC
Yes, I do deposit some and I also have a career outside of this.
I will visit the Taxman and say I am a consultant part-time and have them handle this....
Thanks again for all you help!!
I know this is after April 17th, however in case you haven't filed yet, the best bet is to focus on having your income matching your expenses. Meaning, anything that has a paper trail, you must claim as income. Too many deductions generally raises more red flags with the IRS. Yes, I pay more taxes because I don't deduct every little expense that goes into this sort of industry. Stick with the basics: Mileage, advertising costs, basic office expenses, travel costs (but be weary of having it being too high as this brings on red flags as well), cell phones and etc. You could try to claim being an entertainer and you need "entertaining" kind of clothes, however again, certain professions like consultants, and artists/entertainers tend to get audited more.
I personally think it's smart that you are trying to at least claim that you are making an income. I just don't get how the ladies think they can put the stuff in the bank, buy new cars, new homes and etc and never file or claim the income. If they ever got audited they would be so screwed!
"If you drive a car, I'll tax the street,
if you try to sit, I'll tax your seat
If you get too cold I'll tax the heat,
if you take a walk, I'll tax your feet"