Employee Business Expense

Musician - formal wear

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Stockholder meeting

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Refresher courses - Transportation

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Politician - out of pocket expenses

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Mechanic - steal tipped safety shoes

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Guide dog - Legally blind

Asked Tuesday, December 19, 2000 by an anonymous user

CPA Answer:

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.
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Employee Business Expense

Swimming lessons

Asked Tuesday, December 19, 2000 by an anonymous user

CPA Answer:

Swimming lessons even if prescribed by a doctor are nondeductible.
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Employee Business Expense

Subcontractor Income

Asked Tuesday, December 12, 2000 by an anonymous user

CPA Answer:

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).
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Employee Business Expense

Army Reservist - Uniform Maintenance

Asked Wednesday, November 22, 2000 by an anonymous user

CPA Answer:

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.
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