Today TaxMama hears from William in Florida with this request. “My wife is in school and doing her practicum in psychology. She is working for a nonprofit and considered a independent contractor. She was told she could take certain tax deductions such as mileage, cell phone etc. And I would like to get a complete list.”
There is no ‘complete list’ of business expenses.
What’s this complete list nonsense people keep asking about? Some people can take deductions that other people cannot based on the nature of their business and its activities.
What you can deduct, is based on what you spend that is business related. If what she spends is not for her business, it’s a personal expense. That’s pretty straightforward.
You can find more information about that in IRS Publication 334 the tax Guide for Small Business http://www.irs.gov/publications/p334/
But you’re asking the wrong question. It’s not the expenses that really matter. It’s all the loopholes, like ways to make it possible to deduct the cost of health insurance and medical care; education costs, pensions and more.
You can find that kind of guidance in Small Business Taxes Made Easy.
Even though the specific forms and limits in the book are far out of date, the concepts and strategies are not.
And remember, you can find answers to all kinds of questions about business expenses and other tax issues, free. Where? Where else? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Publication 334 :: The Tax Guide To Small Business
- TaxMama’s Book :: Small Business Taxes Made Easy.