Sorry, but no 'blanket' 100% deduction
Posted By: PsychicMT on 2008-07-27
In Reply to: Health Insurance for IC - To Ins or Not
First, forget about a catastrophic illness - if you have a gallbladder or appendix, you can lose your home, right down to just keeping the shirt on your back. I know this for a fact because it happened to me.
Secondly, I fell into the insurance premiums are 100% covered trap personally (2006/2007). When my accountant actually did my taxes and explained the formula used for determining how much of insurance premiums (and out-of-pocket expenses) are figured, my deduction ended up less than 50% of my oop amount. I was disbelieving and demanded my accountant prove this, so they called the IRS and believe me, they proved it. If someone tells you, without reviewing the details of your estimated premium/OOP yearly costs and estimated yearly earnings, that your premiums will be automatically 100% deductible, they do not know what they are talking about. My point is not to be argumentative, it is to remind you that guessing without expert advice about your personal situation can be very costly. Learn from those of us who have paid dearly for poor judgement and bad advice.
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Pay deduction with DQS
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So, I'm not real clear, are you saying you are a statutory status worker and thus federal is deducted which is what ?? 25% and is withheld. If you were and IC independent contractor, nothing is withheld and you send in the taxes on your own. . Employee and statutory have all or some taxes taken out.
Another Deduction (sorry)
So sorry, I forgot one of the most important deductions, your IRA or SEP IRA,your accountant will know which is best -- this was something my accountant insisted I do years ago; now they are worth "plenty" and I am so grateful to him for insisting I do this. It's all deductible and a wonderful way to save for your retirement.
Get a tax guy, his fee is deduction. FYI, if you
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Deduction is 100%, not 50.
x
100% deduction for me too as IC.
xx
about deduction from mortage
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I can use the money now more than I expect to need it later, as property values continue to go up. Also, after so many years of NOT claiming office deduction, isn't that penalty withdrawn?
Isn't the standard deduction much more than $2K? nm
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I think you just don't take the deduction for it the year before...ask your CPA
x
the SEP IRA is a huge deduction...
but I can't say that I've seen people frequently posting they take $10K in deductions. That also means they spent $10K. You may be imagining that. Maybe do an archive search and then try to repost and contact them? As has been frequently said on this post, the only difference between IC and SE is an IC pays another 7.5% self employment tax but then takes deductions. Don't see how that adds up to 10 grand.
Deduction in pay for errors....
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Your standard deduction -
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I just finished a personal income tax preparation class in my accounting program in college. I always thought I was doing something with those deductions too until I took this class. Went back and looked at my old returns and lo and behold, always just took the standard deduction.
Personally, I am just upset that I took so much time keeping up with all those receipts and so forth!!!
Can you take home office deduction if you are sm
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No, but unreimbursed work-related expenses may be deduced on Schedule A.
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get an accountant -- you can take off their fee as a tax deduction and to me, it's worth it to ma
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Home Office Deduction
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Tax guy fee is deduction as is insurance cost if
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Another problem with home office deduction
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:P
yepper - automatic deduction from invoice
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don't need to depreciate computers anymore. take the deduction in the year purchased
x
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