Is this a writeoff?

Question

I am an inhome caregiver, employed by a company (not an agency). I drive myself, in my own vehicle, to the clients home, sometimes take the person on errands, and I'm required to have a cell phone and car insurance(which I pay for). Is there anything I can deduct? Gas, phone bills? I'm very unfamiliar with writeoffs. Any info would be helpful!
Thank you!

I forgot to mention it is a non-profit company. And if I can verify it's a writeoff, how do I go about it?

Answer 1

From your situation, saying that you are employed by a company, I am assuming you are getting a paycheck, whether weekly, bi-weekly or whatever.

If so, you can deduct your mileage driving to the clients homes, and taking the clients on errands, and also cell phone. How you would report your expenses would be on a Form 2106 - Employee Business expenses. You can deduct the cell phone, but only to the extent that you use it for business. If you don't make any personal calls with it, then you can deduct the cost of the cell phone (as long as you bought it when you started being a caregiver) as well as the monthly charges. If you do make personal calls with it, then you can only deduct the business %. Also, as far as the driving goes, you can deduct either actual expenses (gasoline, insurance, repairs, interest on a car loan, motor vehicle excise taxes, tolls, parkling, registration renewal, cost of the vehicle itself) or mileage, which for 2007 is 48.5 cents per mile. Either way though, you can only take the % that you use the car for business purposes. Mileage for personal use of the car is not deductible. If you drive 10,000 per year, and 5,000 miles is for driving for clients, you could take 50% of your actual expenses or take the 5000 business miles and multiply it by the mileage rate. You also would need to deduct from the 2106 any reimbursements that you get from the company you work for. The net expenses on Form 2106 would carry over to Schedule A - Itemized Deductions under the Miscellaneous deductions section, and you could deduct the amount that exceeds 2% of your AGI. If your itemized deductions in total exceed your standard deduction than you would get a benefit from deducting your expenses, if they don't exceed your standard deduction than you get no benefit. You also need to check your state guidelines, as some states also allow for Employee Business expenses from Form 2106. Massachusetts for example allows such expenses, but with modifications.

Answer 2

PepsiLime got this mostly correct, however some things are incorrect.

1. Excise tax would be deductible under Personal Property tax (Personal Property Tax is a tax that is based on the value of the item).
2. Parking fees and tolls are deductible whether or not you use the standard mileage rate or actual expenses.
3. Mileage from your home to your first job site and from your last job site to home is not deductible because it is commuting mileage (unless you have a qualified home office).

Other expenses that you can deduct (business % only) are: auto club (AAA), washing and cleaning and garage costs

Also these will only be deductible IF you are not reimbursed by your employer. If you could be reimbursed but choose not to be, then they are not deductible at all.

Answer 3

Yes, if you are an independent contractor, which it sounds like you are. Then you can deduct gas, insurance, car payments, phone and anything else specific to your work. Remember you can only prorate the amount you use for work and keep your personal uses separate. Good luck

Answer 4

I believe they are list-able under the work expenses section , Schedule A , line 20 . . .

But check the web site

http://www.irs.gov/individuals/index.html

and call their 1 800 number , it should be easier to reach now that spring tax season is past !

http://www.irs.gov/help/article/0,,id=96730,00.html

>