need some tips for tax deductions
Posted By: tiredQA on 2006-02-27
In Reply to:
I would really appreciate any tips I an get on tax deductions for at home employee.
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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.
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.
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.
Hidden business tax deductions?
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!!
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,
;+
Thanks for the tips.
By the way, aren't little girls the best?
Thanks for the tips - you were right!
It was great. Cool air, all Ops reports, clear dictators. I realize now the other people on my accounts are getting started at 5:00 am and beating me to all the work. Little did I know!
I only worked for about 2 hours last night because it was a spur of the moment thing and I hadn't napped. I worry about the quality of my work when I'm tired, so I'm going to take a long snooze this afternoon and start work at about 9.
In the 2 hours I worked, I got 390 lines, which is excellent for me with no templates/normals. Woohoo! I'll be able to hit my line count for the day in about half the time it takes me during the day.
Thanks all!
My tips
From someone who goes twice a year. Definetely plan to go Super Bowel Weekend,you will have ZERO wait on rides and just run from ride to ride, it is great. Also the first two weeks in December are okay. The summer and spring break are disgusting, it will put you in such a bad mood after one day. Check out the website Mousesavers.com. They have so much information there about everything Disney. When we go for one night with two kids and Florida resident discount we spend at at $500 for hotel, food, etc, etc. We also get in the Disney mood and think that are made of money so do spend more than needed. I would say go to disney site Disneyworld.com and figure out your ticket prices and hotel and then add $60 for each person per day. That is $20 per meal with a little extra left over from each meal for drinks, snacks, etc. That will be the top amount you need, but it gives you somewhere to start. We try to eat breakfast in hotel, pop tarts, PB&J and then only have to pay for lunch and dinner. Or eat breakfast, skip lunch and eat early dinner. If you need any more tips let me know, I have learned a lot over the years of going.
btw thanks for the tips
You're right, sitting around waiting for the perfect job won't happen. Something about MT'ing made me feel so comfortable and cozy, now not so much. I'm in the beginning stages of stepping out and finding another career before the boat sails. I guess having a few ideas is a start.
Thanks everyone for your tips. I really appreciate all the help!!
Hopefully, I can become an ESL specialist:)
I used to cut the tips off
Where I used to work as they seemed to turn the heat waaaay down at night and on the weekends when there was no one else but me in the bldg. working! I had bought those cheap less than a buck stretchy kind and cut the finger tips off and that worked well for me.
thanks for all the tips !
tips
Do you have one of those old-fashioned grocery stores in your area that still take your groceries out to your car? Like a Piggly Wiggly for instance? Do you tip the baggers that take your groceries out? I seriously had never gave it a thought until a friend of mine went to one of those grocery stores with me and she said that she does. I've never noticed anyone doing that. I tip my beautician, at the car wash, and for a manicure/pedicure, but it had honestly never crossed my mind until she said that she did that. Now everytime I go I'm looking around to see if anyone else does and I still can't figure out if they are or not.
Tips sm
Wouldn't it be nice if we got a "tip" for every time we saved someone by taking extra time with their dictation? Just a dream, of course! I too give my hairdresser a $20 tip for full highlight, etc., but I find now for just a cut alone to give her $5 is enough as it doesn't take that long. Perhaps I'm cheap, but I think the prices are so riduculous unless you go to SuperCuts, etc., that it's figured into the price. A hairdresser once told me he paid $3.00 for a $45.00 perm solution, of course, no one gets "perms" anymore, but there's a big markup. I try to go according to how long the stylist spends on me, if she gives me extra time and attention, I go higher. Sometimes some of them put on an "act" for you if they're not busy. You have to know the circumstances. My "regular" hairdresser pays for her space, so she has to make her rent and pay a babysitter. I like her, so I'm willing to spend more.
A few other tips, sm
A local noon TV show gave similar tips that have appeared here, but here are a few more:
Keep your money with you, i.e. wear a fanny pack rather than having it in a box or something.
Sometimes people ask to use your bathroom. Don't let them in your house, let them know of a store or gas station nearby with restroom facilities.
If it is a hot day and you have access to a child who is old enough, have them sell ice-cold lemonade. People will buy. Or, just keep a pitcher of ice cold water and paper cups, just to help them cool off.
Set a time and cut prices in half the last couple of hours on the second day, if you really want to sell your stuff.
If you don't want to move the unsold stuff back into the house, consider donating it to Good Will, Salvation Army, etc. Just pack it in your car and drive it over.
Have fun!
Thanks for those tips. (sm)
Those are really some great ideas.
My youngest has 2 more years until he is off to Kindergarten. As much as I hate to wish away the years where my kids are concerned, I know that things will be much easier for me when I have a "full" day to be able to devote to work with no interruptions. Then I will just have to worry about family and friends interruptions, which should be easier to handle!
I did sit down with my daughter yesterday and told her that I was desperate for some help this summer, oferring a small raise in her weekly allowance if she would give me a hand with the boys. She has been spending her days running around way too much. She agreed, so we will see how that goes.
It definitely is not easy to work at home when you have children. I can't even count the number of times I have thought to myself that I need to start looking for an in-house job. Then I remind myself of the benefits of being home for my kids. I think they do outweight the disadvantages in the long run.
Thank you everyone for your tips!
x
Any tips
I am looking to get back into the field after a 12 year break to raise my kids. Any advice on how to get my foot in the door or who might hire me? I have over 10 years experience in out-patient radiology.
Thanks.
Thanks for the tips!
nm
My tips here...
"With my tapes, I could type the entire day's dictation for the day in one word document."
Why can't you do that now? I type all my files in one Word document, them chop them up into separate files when done proofreading.
"It takes much longer to download the file, create the new documents, save, and upload than it does to type it."
Well, how long did it take you to get in the car and drive to get your tapes and return them?
I'm not sure what your problem is. I can tell you how I do it....maybe that will help.
I download all my digital files at once, then start transcribing them all in one Word document.
If you can't download them all at once, download the first one and transcribe it while you're downloading the second one, etc.
Thanks for tips
Thank you for the tips.
I just recenty started to use the Expander more for the basic parts of the sentence. It seems as time goes on, more things occur to me. I will check out the links posted too (thanks!).
I need to come up with a good system for labs. I can see that is slowing me down ... and vitals. I am very slow on the number row.
Anyway, I appreciate the ideas posted and will welcome any others that you all might think of.
Here are a few tips (sm)
Have your own "word list" (I use Lil Red Notebook) so once you look up a word and verify it, it will be faster to find it next time.
Also get a good Expander and learn how to use it, not just for individual words but for whole phrases (and even paragraphs) depending on what kind of work you are doing.
Stedman's medical spellchecker.
Try to just work during work hours, and surf only when you are not supposed to be working. This is the hardest thing for me! Sometimes even when looking things up online I get distracted, following links and reading things I don't really need to read when I've already found my answer.
Good luck to you. I have heard nothing but good things about an M-Tec education!
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