Small Business

If you meet the criteria for a "performing artist", you may use your business deductions to arrive at an adjusted gross income.
The deductions are not considered an itemized deduction, but rather as an offset against adjusted gross income. Speak to your local CPA to determine if you meet the criteria for a "performing artist" and whether you can take advantage of this income offset reportable on IRS Form 2106.

Generally, union, professional society, trade association, booster club, Chamber of Commerce dues are deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Voluntary payments to a union unemployment strike or benefit fund are not deductible.
Costs for running for a union office are not deductible.
Job related subscriptions to professional journals and trade magazines are deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.

If you can claim the expense of purchasing uniforms or special work clothes, then the cleaning, laundering, and repair of those items are also deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.

The IRS has strict guidelines as to who may fully expense or depreciate the cost of purchasing a computer.
The computer must be used for the "convenience of your employer" and also be required as a "condition of employment".
Condition of employment means you cannot properly do your job without it. Computers are considered "listed property" subject to IRS restrictions.
The computer must be required for the job and be inextricably related to proper job performance.
The purchase of the computer must be a mandatory job requirement, not just a convenience for the employee.

Cellular phone equipment (similar to computers) must be used for the "convenience of the employer" and be a "condition of employment" for the taxpayer in order for it to be fully expensed or for the cellular phone costs to be depreciated.
Condition of employment means you cannot properly do your job without it.
You may write off the cost under the first year expensing rule or use a 5 year MACRS life for depreciation.

You may not deduct any part of the standard monthly charge for the first telephone line into your home.
If you have more than one line which is used for business, the costs are fully deductible.
The costs will include phone rentals, business long distance calls, and optional services such as call forwarding and call waiting.
To avoid possible problems with the IRS, it is suggested that you maintain separate business and personal phone lines.

The costs of buying and maintaining clothing that can be considered suitable for street wear are not deductible.
The costs of buying and maintaining Uniforms or work clothes not suitable for street wear are deductible. Uniforms for police or fireman are examples of uniform itemized deductions.

Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179.
For a tax year beginning in 2012, the Code Sec. 179 expensing election is reduced to $139,000, with a $560,000 investment-based ceiling (down from $500,000/$2 million).
For tax years beginning after 2012, it will be further reduced to $25,000 with a $200,000 investment-based ceiling.
For a tax year beginning after 2011, expensing can no longer be claimed for qualified real property.
Generally qualifying property is:Tangible personal property (such as machines, equipment, furniture). Certain other tangible property used for specific purposes.
Single-purpose agricultural or horticultural structures.Certain storage facilities. Railroad gradings or tunnel bores.

Unlike Social Security, there is no limit on wages or earned income for Medicare purposes. Tax rates under the Medicare program are 1.45 percent for employees and employers and 2.90 percent for self-employed persons