• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Deducting work expenses...

H

homestarmy

Diamond Member
Well at my new job, they charge $100 for the headset, and the way it is done is in such a way that it is taxed. I will be itemizing my deductions since I own a home. Can I just claim this as a tax deduction since it is solely for work? Or do you have to be incorporated or something to do so?

Are any of you guys writing anything off creatively? I am also considering doing tech support from home in the future through a company called WillowCSN and possibly deducting a reasonable amount for my office... what do you guys think of that? Would it work? At that point I would be incorporated because it is required for that job.
 
Originally posted by: homestarmy
Well at my new job, they charge $100 for the headset, and the way it is done is in such a way that it is taxed. I will be itemizing my deductions since I own a home. Can I just claim this as a tax deduction since it is solely for work? Or do you have to be incorporated or something to do so?

Are any of you guys writing anything off creatively? I am also considering doing tech support from home in the future through a company called WillowCSN and possibly deducting a reasonable amount for my office... what do you guys think of that? Would it work? At that point I would be incorporated because it is required for that job.
Click to expand...

You asked about creative writeoffs? I am writing off my Golden Tee machine as a second business. I have stated income from monthly tournaments and hole in one contests. So, I'm going to set that up as a second business and write off as much as I can to offset an $11,500 cash prize I won earlier this year.
 
generally yes, but you can only deduct the amount above 2% of your AGI. So, if your Adjusted Gross Income is $20,000, then you can deduct the amount of these costs above $400.

edit: what do you mean "it is taxed"?
 
Thanks for the info! So 2% of my adjusted gross is all that I could claim for the whole year for the room? So $30k would give me a $600 writeoff for the entire year? Bleh, that's not that much (but still worth doing).

And as far as it 'being taxed' (the headset), my gross pay was $400 and my taxable income was $400 (yes exactly) and they took out $24.75 for the headset (first of four payments), hence it is taxed.
 
Originally posted by: homestarmy
Thanks for the info! So 2% of my adjusted gross is all that I could claim for the whole year for the room? So $30k would give me a $600 writeoff for the entire year? Bleh, that's not that much (but still worth doing).

And as far as it 'being taxed' (the headset), my gross pay was $400 and my taxable income was $400 (yes exactly) and they took out $24.75 for the headset (first of four payments), hence it is taxed.
Click to expand...

That's called a payroll deduction, not being taxed.
 
Originally posted by: homestarmy
Thanks for the info! So 2% of my adjusted gross is all that I could claim for the whole year for the room? So $30k would give me a $600 writeoff for the entire year? Bleh, that's not that much (but still worth doing).

And as far as it 'being taxed' (the headset), my gross pay was $400 and my taxable income was $400 (yes exactly) and they took out $24.75 for the headset (first of four payments), hence it is taxed.
Click to expand...

You have to eat the first 2%.

Using your example income - At $30K, you would eat the first $600 of expenses used for business purposes. After that then the amount becomes deductible on the Schedule A. There is a form 2106 that you use to list the business expenses. This includes vehicle travel and expenses related to work, but not expenses required in order to commute to work.
 
Originally posted by: bunker
Originally posted by: homestarmy
Thanks for the info! So 2% of my adjusted gross is all that I could claim for the whole year for the room? So $30k would give me a $600 writeoff for the entire year? Bleh, that's not that much (but still worth doing).

And as far as it 'being taxed' (the headset), my gross pay was $400 and my taxable income was $400 (yes exactly) and they took out $24.75 for the headset (first of four payments), hence it is taxed.
Click to expand...

That's called a payroll deduction, not being taxed.
Click to expand...

I understand, but with being paid $400, as in $10 an hour times 40, and having $400 in TAXABLE income, that means it was taxed, no?
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top