I work from home for a company that I have to pay internet for, can I claim this on my taxes?
I work full time out of state for a company, in which I have to provide my own internet. I do not have enough to itemize my deductions on a schedule ...
I work full time out of state for a company, in which I have to provide my own internet. I do not have enough to itemize my deductions on a schedule A, so I am not able to include this expense in there. I do however have freelance income and loss that I fill in on a schedule c-ez. Is is OK to include my internet bill that is used primarily for my full time job in my itemized losses for my freelance job? And if so, I read somewhere if you have w-2 income, you cannot claim more than 2% of your income in business expenses, would this apply?
since the internet is related to your w-2 income, this expense would be claimed as a miscellaneous itemized deduction subject to 2% of your AGI on schedule A. however if you also use the internet or other items like your cell phone for your free lance income, you can allocate a portion of the expenses to claim on schedule C.
If you freelance and they provide a 1099-MISC instead of a W-2, you can claim those expenses on Schedule C. Otherwise, as you have discovered, you have two thresholds: First, the 2% Form 2109 Employee Business Expenses (anything OVER 2% can be deducted), and then that $5700 Schedule A Itemized Deductions.
Also note that if you are an independent, your employer really screws you by not paying their 7.6% half of Social Security and Medicare taxes…you end up paying 15.2% in Self Employment taxes.
You must keep your expenses for your full time job and your freelance work separate. If I understand your wording correctly, since your internet expenses are for your full time position and not your freelance position, you cannot claim this expense on your Schedule C. Further, since you do not itemize deductions, you cannot claim this expense anywhere. Sorry.
Unless you have a separate Internet connection for business use only, the IRS will disallow the deduction. The IRS treats your first Internet connection in the same manner as the first phone line in your home, i.e. primarily for personal use. Since it’s not feasible to allocate the use between personal, employee business, and self-employment use, you cannot deduct any of it.
No, if it’s used primarily for your full time job, then you can’t call it an expense for your freelance work.