I need to know if Cobra is a tax write off, medicines, health aids, clothing for work, meals for work, mileage for work, % of cell phone, internet, rent, electricity, home phone, utilities, and naything else I may have missed. I have kept all receipts for 2006 and just need to know what can and can't be with a home office and multiple jobs.
2007-03-05 08:15:35 · 4 answers · asked by houstonmurray 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You can deduct Cobra, medicines, health aids if you are able to Itemize your deductions on Schedule A. (Medical and dental expenses must be 7.5% of AGI or more in order to claim)
Clothing for work - Not unless you are a nurse or chemist. Basically if you have to wear and uniform AND you wouldn't wear it out in public, you can deduct it. You can't deduct work clothes if you work at an office. (again business expenses must be 2.5% of you AGI to claim and you must surpass the standard deduction for your filing status to take)
Commuting miles to and from work are not deductible.
Cell phones must be used exclusively and only for business in order to take as a business expense. That means absolutely no personal calls.
You can take a percentage of your rent, electricity, utilities if you truly qualify for a home office. And no you can't take your home phone unless you have a separate line just for business. Also, you must not use the office at all for personal use. No one can play or sleep in there. Sounds like you really need someone who knows what they are doing to do your return this year. Trust me, it'll definitely be worth the money.
Taxpayers who claim Home Office Expenses are ten times more likely to get audited than taxpayers who don't. You don't want to mess this up.
2007-03-05 08:39:35 · answer #1 · answered by Fool in the Rain 6 · 1⤊ 2⤋
Your mileage, postage, prices of resume production, toll calls, lodging and commute for an out of city interview, are all deductible on time table A Miscellaneous Deductions, to the volume those deductions exceed 2% of your income. Interview outfit isn't deductible.
2016-12-05 07:00:19 · answer #2 · answered by gnegy 4 · 0⤊ 0⤋
Your best bet is consult with a good tax accountant. Personally, I would go a CPA who works for a major firm (some of the majors are Ernst & Young, Deloitte & Touche, KPMG, and PricewaterhouseCoopers). They'll cost more than a local CPA, certainly, but you'll get the best advice backed by the best support staff available.
2007-03-05 08:24:18 · answer #3 · answered by Tomel 3 · 2⤊ 1⤋
that's why you hire somebody who knows what they are doing...
2007-03-05 08:19:28 · answer #4 · answered by Tacyella 4 · 0⤊ 3⤋