Hidden business tax deductions?
Posted By: PLEASE on 2009-02-25
In Reply to:
Have any of you come up with some not well know deductions we can take on our taxes? As you all know, in transcription our overhead is very low and we get SOCKED on the self-employment tax.
I already do the percentage of house on taxes, utilities, phone, gabage, etc. Full on cell phone, meager supplies, meager mileage, internet. Might have gotten yard care deducted last year, I forget.
Let me know if any of you have other areas of deductions!!
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hidden costs by being an IC
The taxes are more as an independent contractor. period.
you pay the matching that the employer would pay.
Normally your benefits pkg from the hospital or employer of sick days, holidays, insurance, etc is worth about $10,000. Somehow you have to absorb that with what you charge. In addition to losing the matching the employer is paying. Otherwise the company you are contracting with is making out like a bandit -- and you truly are coming out on the short end of the stick -- they know this -- and they are laughing up their sleeve until we wake up out here and start charging so they won't be coming out the winner in this all the time. The very reason they OUTSOURCE is to get rid of those hidden costs and we now have taken on.
And then of course the hidden days down for work on computer, waiting for storms to pass, and the various and asundry responsibilities you take on and absorb that the company you are contracting with gets to turn loose of.
p.s. and oh please don't pop up with ITS WORTH A LOT TO TYPE IN MY JAMMIES. No, we are expected to be professional whether in Gucci or WalMart specials. And we should be paid accordingly. That argument doesn't fly. and being home with the kids doesn't either. Only one thing can be done at one time, and you can watch the kids or you can transcribe but you can't do both simultaneously. The guilt factor may be less when one needs to do errands in the day -- but guess what -- while people are sleeping guess who is up into the night beating the keys. No, this should not be a trade off. It's a business like any other business who does a contract with another company. 
ROFL! That's a good one! DH had the Snickers hidden
in the back of the freezer, but i think he forgot about them. I usually keep my goodies in the back of my file cabinet. Underwear drawer works, too!
There are a lot of things MTSO hidden costs..
MTSO bills for a lot of things to run the business that have nothing to do with line counts, but they may be billling them as line count as opposed to breaking them down individually.
It really wasn't hidden so much. Normal board.
x
This could very well have been the hidden Scavenger Hunt post!
xxxxx 
Unfortunately it is legal..so yes it is business and they will continue with bad business practices
x
deductions
The IRS has guidelines published for people who file quarterly. I've been doing this at home for 9 years now. Over the years the govt has sent me vouchers which I've ignored. This year, however I decided to pay quarterly to stay out of trouble. I know there are exceptions for filing quarterly if you have children but since I don't I didn't pay much attention when reading the info. However, I have heard of ICs who had their husbands take more out of their checks but the IRS penalized them anyways. Hope this info helps.
deductions
Well 2600 out of 15 K is about 15% to 20% and it depends on the sq foot that you have in your office. I use 20% and deduct 20%. You cannot deduct ALL of it as it is only the percentage of the house that you use. If you are a business, an IC and it is required that you need that occupational license it is deductible. I deduct my business license which is a percentage of my business -- would trade the $200. If we want to operate as a business and want the deductions that you have to be licensed as such and pay the necesssary fees. Can't have it both ways.
I had about 12K in deductions.
.
deductions
I deduct and depreciate my house as I know I will live in it well after I retire and so won't have to worry about the depreciation move or when I die and my estate can well pay for it if it. But I deduct advertising, phone, health insurance, mileage, computer, supplies, depreciation of house, partial utilities, my internet, cell phone, etc. and it equals out to at least 15K a year. My mileage helps but if I were working outside in a hospital I would have that expense and no deduction so I don't mind. I also put aside 20% in my IRA which is a deduction. Most of these deductions I would have if I were not an MTSO-IC as I would still use internet, gas, house, utilities, etc. and would have more of a taxable income but someone is just holding my taxes for me and sending them in. But you have to think ahead to prepare. I go on vacation to places where there are seminars that I want to attend, etc. Again if you weren't an IC you would still have those expenses and they would not be deductible. It is just a shock because no one withheld for you during the year. You almost think and feel that your employer is actually paying those taxes for you and except for the 7.5 of SS they are just managing your money. So begin to manage yours now. If you have kids and give them allowances, you can say you are paying them for filing and be able to deduct up to 500 without doing a 1099. There are legitimate deductions out there but you gotta search for them. If you have your kids give out flyers, etc, pay them and deduct it. You give them money anyway. But I would not give up my house deduction/depreciation for anything as I know I will be here long after I retire. That is my long 2 cents worth. Patti
I need help with QA deductions..SM
It has been so long I don't remember the exact deductions and how it works. Could you please tell the very basic process for deductions and how it works. Specifically, how much is deducted for a word left out, the wrong medication dosage, no comma where there should be one, and when they type a word like has but it was supposed to be his.
I'd really appreciate it. Maybe someone knows a site that has this info. I couldn't find anything myself.
thanks.
deductions
Mileage for any travel pertaining to business, advertising, mailings, internet, phone, office, -- first couple of years I went to a CPA and then did on my own following his prior returns with Turbo Tax. They take you through it step by step. Anything you contribute to your SEP retirement, insurance, computer, desk. Get a good book or talk with a CPA. Have a separate check book for all payments to work related expenses. Even a couple thousand miles per year is a savings.
Deductions
Hello everyone. I know this has probably been discussed a million times and that there's probably information in the archives (which I plan to dig into), but I was wondering if anyone could, off the top of their head, guide me to a site or something that could specifically tell me what deductions I am able to take as an IC doing MT work for a national company? Thanking you in advance. Reb
Don't forget the tax deductions
Pleae keep all your receipts for hearing-aids/batteries, etc. and check with your tax preparer at year's end or before. I would think this would be deductible but worth asking about.
I only took the standard deductions
and it still happened to me. What I couldn't understand was that I was supposed to be in a less likely audit bracket because that year I was an employee, an IC and an SE. (they were trying to see if I met employee status on my SE account).
TAX question..deductions??sm
I am starting or trying to start my own business at home
but in order to do that I had to buy my own pc and use
it to take an online course at home in my spare time.
I work parttime for a national MT co. I want to deduct
the cost of the pc and the course from last year's income
which I earned as an SE (several W2s). Both the course
and the pc were bought in Dec. 05 using a small-business
credit card. I don't expect to finish the course for a few
months and only then will be able to "market" my new skill.
My question I guess is..when you purchase something by credit,
is it "totally deductible" in the year of purchase or do you
only deduct the payments in the year they occur? Thanks.
need some tips for tax deductions
I would really appreciate any tips I an get on tax deductions for at home employee.
Just keep deductions in mind.
I live in Alabama and out in the country. I count the miles I drive to the bank and to the post office, post office box dues, cell phone, extra phone line, internet, etc. As an employee I had to pay all these anyway, I just could not deduct them from my taxes.
I pay taxes now and take ALL deductions
x
Employee/IRS deductions
I have been claiming my home office for years as a deduction, which includes portion of my oil heat, telephone bills, DSL bill, computer, paper, pens, notebooks, etc, books, software, etc. I have been an employee and an independent contractor, and my accountant has always told me I could take these deductions, so I have with absolutely no problem. The rules for a home office is that the room you use needs to be for business, so I use a small bedroom just for my office, i.e. it cannot be a room you use for a bedroom and a home office. Hope this helps. 
What are some examples of deductions you use?
nm
Disagree, as an IC you can take those deductions
I'm an employee now, and though I still do write off home office and percentage of my bills it's nowhere near the amount I used to be able to write off as an IC. All those extras have to add up pretty high to get above your standard deduction to write them off as an employee.
Since when as an employee can you get deductions?
nm
Income after deductions.
Income after expenses is what you are given credit for making. If you grossed $40,000 and had $10,000 worth of expenses, you made $30,000. This is your taxable income and what is credited as your social security income.
I made my business your business by posting and...
I totally respect everyone's opinions. It is easier for others on the outside looking in. That's why I pushed the "post reply" button yesterday. I trust my fellow MTs and I know the more I read from you all, the more confident I am becoming. I just need that final push, not from him though. I also wanted to let you all know that the physical abuse while I was pregnant was documented by my doctor and the hospital. I only wish I had known then that it is a felony to abuse a pregnant woman. I also photographed my face from a couple of weeks ago and told several people in my circle. I had such high hopes for us. Now...not so much. I'm not saying that I won't try to get him to church, but I realize that God can only do so much for someone who isn't listening. j
Business is business. Internet forums are
.
Get a good tax guy. His fee is a write-off. He will tell you what you need to do & deductions you
;I
write offs/deductions for IC's??
Just wanting some ideas on what everyone uses as deductions. Im going to get hit hard this year and just seeing what everyone else does.
TIA,
Are there any deductions for taxes on your paycheck?
nm
To all ICs claiming huge deductions...(sm)
I just met with my accountant yesterday. I am so sick I cannot think straight. I asked alot of people before moving ahead with an IC position and leaving employee status. EVERYONE stated that the deductions you can write off are more than worth paying the extra SS taxes that you no longer have an employer to pay. I even saw several people specifically state they lowered their taxable income by $10,000 or more so the IC status was well worth the headache of paying the extra taxes.
Well, I would sure love to know how in the world you ladies come up with these deductions. The accountant said my total deductions for my home office came to about $2400. But then my SS taxes I owed ate up that plus about another $1500. Are those of you reaping in huge deductions working strictly via the internet? I have no gas, mileage, vehicle wear/tear deductions because I'm strictly internet based. But even with considering those deductions, if I had them, I still cannot see where in the world you all are coming out so much better. Someone please offer suggestions/comments....have I just completely screwed myself over here or do I need a new accountant?? 
My IC home office deductions came to only sm
$1100 because I own my house outright and, like you, have no real expenses because I work at home off the Internet. My health insurance premiums are low because it's lousy insurance.
People with high mortgages will have a higher deduction based on that. They may travel each day to get their work, etc. Every person's situation is different.
I think you did okay!
BTW, if anyone uses H&R Block, I strongly urge you to get the Peace of Mind benefit for $27. Mine came in handy for 2004 when the preparer made a big, big mistake caught by the IRS (I'm going to end up getting a refund of what the preparer said I owed in 2004!!!) This may be my last year with the blockheads, though. I should say I've gotten excellent service in the last 25 years, except for that one preparer last year and Block messing up on its own tax preparation.
Wasn't that 20K TAXABLE after all deductions? sm
I wouldn't mind making more than that and only having to pay taxes on 20K.
You worked, they paid. You took deductions.
x
Does anyone remember name of book for deductions
if you work at home, saw posted a few weeks ago, wrote down and have misplaced. Thanks.
Try googling "book for tax deductions" or
x
depends on income and esp deductions.
last year was my first as an IC, and i saved back money for taxes -- needed none of it.
Been an IC for 17 years now. Never had a problem with deductions; however, I also have a husband
and we file jointly with a schedule C. We do receive a large return, but that is because he has so much tax money taken out, because over overtime, etc. I guess I am just the lucky one with that.
My deductions come out to about 10K a year working as an IC.
But you get tons of deductions and write-offs.
x
My independance and deductions, making my tax load LESS,
x
A good tax guy can help with taxes and give ideas on deductions. His fee is a
:}
I guess they are focusing on people who take huge deductions which I really dont so maybe that is
why they dont audit me because basically there is nothing to audit since my deductions are about $600 a year which are payroll deducted for equipment. I watch with my deductions that everything can be well documented but I really only have health insurance now which before you couldnt take so that is it for me and that is easy to prove.
A good tax guy is worth his weight. He will help you find deductions and if any probs with IRS,
;+
For a business ad?! A business that deals
''Transcriptsis'' x2
''with good track record''
''serve our clients of all sizes'' (I know what they mean, but I just think the wording is funny)
''strive to achieve highest possible quality'' (once again, they never met an 'article' that they didn't hate)
''all departments including H&P...'' (or a comma, for that matter)
Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
nm
Is that really any of your business?
I would think that it would be very wrong of you to spread the information you found on Google while searching for the patient's name. Are you 100% certain that it is the exact same person you are transcribing? Even seemingly oddball names can be duplicated and how would you look spreading around gossip? Even if it is court-documented, it really is not your story to tell, IMO. I would love to know who is telling you to put it on the news. That is about the craziest thing I've heard in a while, although quite good for a laugh.
MT business
It depends on how large a business you want. There are still some small accounts, (10,000 to 18,000 lines) per month that are still on tape that you can get. Also the digital is not that hard but I will not pay for anyone to transfer my files, I can do that. I do not have a phone in system but if someone were to ask I would probably start out with the ones that charge so much per minute and use their system until I knew for sure the account was staying. Where are you located, have you networked with anyone in the area? Are you set up for tapes as well as digital? If you start out alone, you have no back-up, you have to do everything. When you hire I/C's sometimes they are dependable and sometimes not. You will not earn much off of them if you want to keep your accounts. You will not be able to charge as high as the larger companies nor go after the larger accounts at first. It is a fine line as to having enough help and enough work and that is why you hear the complaints all the time, "We have run out of work" as you have no control over how much or when a doctor dictates or if he takes time off. But would I give it up, probably not as the money is good to me. You can E-mail me with any specific questions, I have been doing my own small MTSO for over 20 years. Been through it all, ups, downs, good times, bad times, and everyting in between. My accounts have been with me from 6 years to 20 years so I feel that they are pretty stable.
Well I am sorry that you are using this business as sm
your excuse, but hospitals pay their people for holidays and if by chance you have to work them, they pay you time and a half.
I do not know why a business owner cannot take these things into consideration when setting up a business. This is a business just like any other business and if you have employees, those employees need to be given the same consideration as any other business. IC status is different, but I find using the nature of this business as an excuse just a little weak.
A good business head would enable you to provide benefits for your employees and if you have already made up your mind it does not, then I think probably it is because maybe you need someone else to do that figuring for you.
I am not being mean in saying these things, but even small business owners I know are able to work it out that a holiday is a holiday (whether you have to work it or not) and an employee needs to be compensated in some manner. To me, there is no excuse for not doing so.
new business
My opinion would be to let them either work at home or at the company. I prefer to work at home, but some people may not. As far the pay issue--when I started doing transcription I made .06 cpl and I think that is a fair rate. Hope I helped
This is really none of my business, and I know that,
but the more I read of your story, the more absurd it becomes to even think of staying with this man. I'm truly sorry. I know how hard it is to leave, as I had to that in my former life, and believe me I wanted my marriage to last "til death do us part," but that ain't always possible. I too TRUST in the Lord with ALL of MY HEART and SOUL, and as I said, sometimes it just ain't possible. The Lord will guide you through this. Guess it is just that as an outsider it is easier to see the forest for the trees.
Been there on business
I used to work retail management and my company had a resort there. I have been there several times to meetings and we always had some time to do things. I always enjoyed it and would like to go some day just for pleasure. There is lots to do there.
New business
I have a small transcription company that kind of fell into my lap, luckily. It has been a year now, we have five girls and are doing a really good job with one large account. I had tons of experience as a transcriptionist, but never as a business manager, so I took my time. Now I am looking to get more work. Anybody have any thoughts as to how to reel them in?
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