I have had a very part-time photography business for the last six years. I’ve had a NOL every year because the income from the business is less than the amount I spend on equipment for the business. This year I’m having to reclassify my business as a hobby because it has not had a profit in five years. I’m not filing Schedule A Itemized deductions because my allowable deduction is limited to business income amount which was 0 which is much less than the standard deduction of 50. I’ve listed the type & amount of income from photography on line 21 of form 1040. Am I considered self-employed, do I need to fill out Schedule SE self-employment tax form?
Charles, Thanks, you answered a previous question of mine too.
Robyn, it’s comforting to have the advice of an expert. Thank you!
Bob, I have no mortgage or property taxes & I made less than K in 2008. I filled out a Schedule A & my total itemized deduction is 6 because of the 2% limit. In previous years I filed Schedule C & Form 4562. I would usually Section 179 anything that cost less than 0 & depreciate anything that cost over 0. I purchased over K worth of equipment in 2008. Now that I have most of the equipment that a professional photographer needs, I must classify my business as a hobby. It’s disappointing but now I know I need to work harder at making a profit if I’m gonna say I have a Photography Business. Thanks for your answer.

I need to do estimated tax for having worked under that 1099 form. Now, when you claim deduction under schedule C under Form 1040 ES, if you don’t have all the receipts for business expenses (meal, transporation, cell phone), can your credit card statements serve as receipts in case IRS opts to audit me?

If you used cash, and have no reciepts, is it better to NOT claim deductions for such receiptless business expenses?

Many thanks.

Is there any exception to the rule of not being able to use the standard deduction when filing separately when the other spouse filing separately itemizes? Or, can a husband (salesman with unreimbursed business expenses) file separately and itemize on a schedule A, and the wife (home business) file separately and itemize on a schedule C?

I didnt have a job last year and this year i started doing phone psychic work from home. I’m going to make probably under 10,000 in total for the year (possibly even less; my income from it fluctuates alot monthly, depending on how many people i consult) I know im probably going to owe about 1400-1500 or something like that and I’ll obviously begin sending in estimated payments based on this years income beginning next april. But I’m worried that I misread the rules for estimated taxes and may owe penalties….I also heard that filing schedule c’s tend to get audited alot. I have barely any deductions (mostly a small amount of paypal fees), what’re the odds that I’ll get audited? I’m new to all this so I just want to get a feel for it because I’m a bad worrier.
Thank you for replying and your information but I’m asking if I’m going to be penalized for not paying estimated taxes this year (it’s already too late to do so considering I started working at the beginning of the year) if I made no money last year…
Thank you tax lady… That’s the exact info I wanted. I’ve been reading alot online about schedule cs being audited and I think it made me really paranoid thnking of having to sit down And go over my records with an IRS agent. Even though I’ve kept good records, it’s a scary thought

I bought 2 Amazon gift cards from Craigslist seller and I paid him in cash. I used them to buy two books that are tax deductible because they’re both work-related. The problem is that on the Amazon invoice, only a small fraction of the price is showing in big bold letters as the ‘Grand Total’, and the rest is part of the gift certificates.

Since I don’t have an invoice for the gift cards, could I have a problem if I add the whole amount as a deduction? How should I declare those two books.

Info: I’m the sole-proprietor of my own business and I use Schedule-C.

Hi, I’m a model and I’m looking put as many deductions as possibly on my Schedule C. I obviously don’t use my cell phone and cable internet exclusively for business but they are absolute necessities for the job. Can I deduct them?
Hmm…so if I bought a cell phone just for modeling I could deduct the cost of the phone plus the monthly bill next year?

I am an independent contractor for a ballet company. I also work part-time for a regular W-2 filing job. When filling out the vehicle expense section of Schedule C I do not understand what the difference is between business miles and commuting miles. Are commuting miles those between my W-2 job and home while business miles are those between the ballet company and home? So confused.

I own a small business (new business owner). I did my taxes for 2007 and 2008 but I just got letter saying there is a discrepancy in the paper work and to refile I claimed 0′s down the board…( they want me to Amend it) …I got the paper work A 1040…a 1040 SE and a schedule C…I didn’t make anything in 2007 but i spent 6000.00 on supplies and fixing up my shop on the schedule C and claimed that 6000 i put that on the form and claimed it as a loss but that form said to put that on amount on line 12 on the regular 1040… MY QUESTION IS…on the regular 1040 do I still claim the standard deduction?? DO I STill need the regular 1040 or just the1040 SE? Some how after i fill everything out it still says I owe money?? How an I still owe when I didnt make any thing and spent 6000?? HELLPPP!

I had my taxes prepared by H&R block, and next to my refund amount it list 0 for H&R block fees in parenthesis. We used the following forms: 1040, 1040 schedule A (itemized deductions), 1040 schedule C (profit or loss from business), 1040 schedue SE(self employed) and form 8863(hope and lifetime learning credit). I know some places charge by form, but this sounds drastically high to me. Am I wrong?

On October 1, 2005, I bought a business which included a used delivery truck being used exclusively for my business. The used delivery truck was estimated to be K. I am trying to finish up 2005 tax return (Schedule c) which was extended. Here is my question on deducting the use of the truck.

I can take section 179 in 2005 and expense entire 6K, right? In that case, I guess I can not use mileage deductions any more beginning 2006.
Or I can use mileage deduction for 2005 and continue to use the mileage method.
But I found some where that if I depreciate my truck the first year using straight line method, I can use mileage method for 2005 and there after as well. What do you think is the best solution?
For your information, my mileage per month is about 1,000 miles. Thank you so much.