Tax Write-Off Question

vinuneuro · #1 07-07-2006, 04:31 PM

Right now, even though I'm doing an internship, I'm working as a contract employee. Do I have any tax write-off potential because of this? I'm spending quite a bit on gas daily..

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blondboinsd · #2 07-07-2006, 04:35 PM

Here In Cali you can write off your mileage to and from work but are you 1099 or taxed?

Mackskibum · #3 07-07-2006, 04:41 PM

As a contract employee with no witholding, you are self employed. That means you have to pay estimated taxes quarterly, as well as both sides of Socail Security, etc. You are entitled to expense deductions for travel, home office and other acceptable business expenses.

Phester · #4 07-07-2006, 04:43 PM

You can't write off your commuting to and from work. You can't write off the mileage from your home to your work place, but you can write off the mileage incurred in excess of ordinary commuting (i.e., transporting supplies or tool, or going from one office to another, or going to see clients, etc..).

For auto expenses, however, you take either the mileage rate or actual expenses, whichever is more (based on a ratio of business to non-business miles).

You can write off any unreimbursed business expenses.

vinuneuro · #5 07-07-2006, 04:52 PM

I had to take up residence in another city away from my home/legal address for work purpose. Can I write this off?

Do you have to be a registered buisness for this?

What about people who drive for a living? When I go back to school this fall, I'm thinking about taking up some contract work there too, part-time. Basically driving around the area for a wifi positioning system company on the east-coast collecting data in the area.

Phester · #6 07-07-2006, 05:00 PM

Quote:

Originally Posted by vinuneuro

I had to take up residence in another city away from my home/legal address for work purpose. Can I write this off?

Do you have to be a registered buisness for this?

What about people who drive for a living? When I go back to school this fall, I'm thinking about taking up some contract work there too, part-time. Basically driving around the area for a wifi positioning system company on the east-coast collecting data in the area.

In theory, you can write off most of the expenses you are referring to. I suggesting discussing with your CPA or tax preparer as you are getting into specifics to your situation.

You don't need to be a registered business to deduct expenses incurred to help you generate the income. Where they go on the tax return (Schedule A, C or E as UPE) is the real issue.

vinuneuro · #7 07-07-2006, 05:04 PM

Quote:

Originally Posted by Phester

In theory, you can write off most of the expenses you are referring to. I suggesting discussing with your CPA or tax preparer as you are getting into specifics to your situation.

You don't need to be a registered business to deduct expenses incurred to help you generate the income. Where they go on the tax return (Schedule A, C or E as UPE) is the real issue.

thanks for your help

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