Employee Business Expense
The most frequently asked tax questions related to Employee Business Expense
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Answer Tax QuestionsMusician - formal wear
Asked Wednesday, December 20, 2000 by an anonymous user
Generally, if your job requires you to wear expensive clothing you may not claim a deduction.
A deductions for work clothes have been allowed for musicians formal wear. Speak to your local CPA about the deductibility of your formal wear.
A deductions for work clothes have been allowed for musicians formal wear. Speak to your local CPA about the deductibility of your formal wear.
Stockholder meeting
Asked Wednesday, December 20, 2000 by an anonymous user
Trips to attend a stockholder meeting are not deductible. In rare situations when a majority stockholder attended a meeting to present a resolution, he was allowed a deduction.
Most stockholders who attend meetings to pick up information for future investment decisions are not allowed a deduction.
Most stockholders who attend meetings to pick up information for future investment decisions are not allowed a deduction.
Refresher courses - Transportation
Asked Wednesday, December 20, 2000 by an anonymous user
If you are allowed a deduction for courses that maintain or improve your job skills and do not qulaify you for a new profession then the costs of local transportation and travel away from home are deductible.
Report these costs as an itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.
Report these costs as an itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.
Politician - out of pocket expenses
Asked Wednesday, December 20, 2000 by an anonymous user
Elected officials who incur out of pocket expenses in excess of any allowances received from the government may deduct as a miscellaneous itemized deduction on IRS Schedule A subject to the 2% limitation.
Examples of out of pocket political expenses are office rent, salaries, supplies.
Examples of out of pocket political expenses are office rent, salaries, supplies.
Mechanic - steal tipped safety shoes
Asked Wednesday, December 20, 2000 by an anonymous user
You are allowed a deduction for your steel tipped safety shoes.
You can claim it as a miscellaneous itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.
Guide dog - Legally blind
Asked Tuesday, December 19, 2000 by an anonymous user
The costs of purchasing and maintaining a guide dog or other animal for a visually-impaired, hearing-impaired or physically disabled person is deductible as a medical itemized deduction on IRS Schedule A subject to the 10% / 7.5% MAGI limitation.
Swimming lessons
Asked Tuesday, December 19, 2000 by an anonymous user
Swimming lessons even if prescribed by a doctor are nondeductible.
Subcontractor Income
Asked Tuesday, December 12, 2000 by an anonymous user
Generally your freelance job will issue you 1099-MISC slips for earnings more than $600. The gross amount of your freelance jobs should be reported on IRS Schedule C along with the corresponding expenses.
The net amount of this business income is subject to Federal tax and Social security taxes.
The federal tax will be calculated on the tax bracket you fall into
Also, the net amount of your business multiplied at .9235 multiplied at .133 will equal your social security tax.
If wages exist the social security tax may be reduced. This calculation is done on IRS Schedule SE.
The net business income will be subject to state tax depending on your state. Speak to your local CPA about the tax consequences of your freelance job(s).
The net amount of this business income is subject to Federal tax and Social security taxes.
The federal tax will be calculated on the tax bracket you fall into
Also, the net amount of your business multiplied at .9235 multiplied at .133 will equal your social security tax.
If wages exist the social security tax may be reduced. This calculation is done on IRS Schedule SE.
The net business income will be subject to state tax depending on your state. Speak to your local CPA about the tax consequences of your freelance job(s).
Army Reservist - Uniform Maintenance
Asked Wednesday, November 22, 2000 by an anonymous user
Generally, the costs to launder your uniform are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
This is true if you are prohibited from wearing the uniform when off duty.
This is true if you are prohibited from wearing the uniform when off duty.