Filing taxes & deductions, receipts necessary?

Question

I have a couple questions about filing taxes.

1. I don't own a home but can I deduct things such as the telephone tax and business expenses? If so, do I need to present receipts for business expenses that came out of my pocket, such as gas receipts?

2. The phone tax, can that be applied to your cell phone?

I also have 4 W-2's from 2006. I would like to e-file (because I can do it for free) this year. I normally go to H&R Block and have them do it but I know that they charge per W-2. I hope someone can help me, I don't want to go to H&R Block and have them lie to me just to get my business. Thank you in advance!!!

Answer 1

The phone tax is claimed without any requirement for itemizing - if you qualify, you get it. Show it in the payments section of your return, down below where you enter the amount withheld. And yes, cell phones are eligible.

For business expenses, if you own your own business, they'd be taken on your schedule C where you show your business income. You should keep receipts - you don't send them in, but will need them if you're audited.

If it's not your business but you're an employee and these expenses weren't reimbursed, you can only deduct them if you itemize, and can only deduct the amount that exceeds 2% of your income. Same answer as above re receipts for those expenses.

Answer 2

Unfortunately I can't answer most of your questions that is why I myself use H&R Bloch. If I was you I would do it for at least one more year and ask them any and all questions so that you understand what you need to do. If you don't like the agent you have been dealing with at H& R Bloch request another one that you may get along with better. Since I do have a bit of complicated tax situation in that I work a couple of self employment jobs plus I work a job or two that also gives me a W-2 form and I have a home that I own so have various deductions for that along with a husband who works and receives a W-2 from his job I find that paying H&R Bloch saves my sanity. H&R Bloch is usually on top of all the latest deductions etc.. If I remember rightly last year they did allow me to deduct part of my cell phone expenses since it is used mainly for my business. My husbands cell phone is also on my account but he doesn't use it that much. I believe I was allowed to deduct 3/4 of the expenses because I am the main user for my various business's. For me a cell phone has become an essential since that is how my clients most often are able to get hold of me when I am not home. I work odd hours so... . I save any and all receipts that may have to do with my business especially if I make a purchase that is definitely for one of my business's.

Good luck with however you file your taxes this year. Have a very Happy Easter.

Answer 3

The telephone gredit is only for Land lines phones who where able to call long distance. This was because the IRS lost a law suit against them for charging taxes on plans that included long distance.

The only way to claim your expenses is against your Avon income. You can take any business expense. However, you need receipts to prove all expenses if you are audited. Cell phones are not a business deduction if used for personal use. IT has to be solely for business purposes or an enhanced plan for business purposes (and the added fees are deductable.) HR Block only charges an extra $1.50 per W2. However, the extra fees for the AVON business is where they would climb.

Answer 4

3 years