This year I’m working as an independent contractor and I’ll be given a 1099 for tax purposes. I’m an umpire for an amateur baseball association....
This year I’m working as an independent contractor and I’ll be given a 1099 for tax purposes. I’m an umpire for an amateur baseball association. I am absolutely required to have internet access and a cell phone.
I did not have a personal cell phone before I started with this association. Can I deduct the full cost of a cell phone if it is used only for business purposes?
I already have a personal computer and internet access at my house. However, now that it is required for a job, can I deduct the cost of the internet service? What if I buy a new computer, is that deductible as long as I keep the old computer for my personal use?
Note: I do not intend to take the home office deduction because I do not have any one particular area of my house that is designated for business use only.
Tags: amateur baseball association, business purposes, home office deduction, independent contractor, internet access, internet service, job, new computer, old computer, personal cell phone, personal computer, personal use, tax purposes, umpire
Posted in Tax Deductions Q & A | 3 Comments »
In August my fiancee and I started working for an employer that pays us with a business account check but doesn’t take out any taxes. We know come tax season things are going to get confusing so we’re trying to get some things cleared up now.
I’m assuming the best way to file would be as an independent contractor since we work from home and because of the way he pays us.
My real question is what counts as deductions. We work from home but we both have offices that we could go to if we needed to. I’m at home about 99% of the time working and my fiancee about 80% of the time. Can we count a portion of our home as a deduction? And is this only if you own not if you rent?
Also we both use internet 100% of the time we are home on the job. We would have internet even if we weren’t working from home and when we’re not working we use it for personal use. Could we count a percentage of the internet as a deduction.
The same goes with cell phones. We both have PDA’s that we use to communicate with our boss and other business associates we must talk with. But we also have them for personal use. Percentage?
We also obviously use our own personal computers but they were purchased a few years ago and are used for personal use as well. Could we count a percentage of the depreciated value of them as a deduction.
I need to buy a new computer for personal and business use but I haven’t yet… Would it count?
My fiancee uses our car for business trips and is reimbursed by our employer for gas and mileage. The car is also used for personal use.
I know this is a lot of questions but we’re both clueless as to what we need to do. We’re probably going to pay someone to do our taxes at least this year. I’m quite worried about all this since I’ve heard that as an independent contractor you must pay back about 15% of your net pay… That’s… a lot.
Anyway, any help with this would be appreciated. I’m browsing trying to find some information on my own but I’m not really used to how they word things so I end up getting confused and frustrated.
Thanks in advance.
Tags: boss, business account, business associates, business trips, clueless, fiancee, independent contractor, job, mileage, new computer, pda, personal computers, personal use, tax season, working from home
Posted in Tax Deductions Q & A | 1 Comment »
For example, towards the end of the year i estimate that my small business (LLC) I will owe ,000 in taxes. If I then purchase a new computer (,000) and purchase more advertising (,000)….Will this mean, more or less, that i will not owe the government any money the following year?
Tags: money, new computer, small business
Posted in Tax Deductions Q & A | 2 Comments »