Quick Questions and Looming Deadlines

I got the following email on April 13 from Bob Smith. I usually don't give last names but something tells me his is a pseudonym. And, if it's not, I used to live in NJ so I know he's well hidden.


The kinds of questions I get usually can be categorized into a few areas. They are usually about specific expenses or generally what kinds of expenses can be deducted, and requests for explanations about taxes paid by indies. Sometimes I get a tough question that needs research on my part -- I'm doing one now for a cruise ship entertainer. There's always the new-to-self-employment folks who don't know where to start, and there's those seeking advice about my fellow tax professionals.

The thing is, when I get an email like the one below, my first response is: You have got to be kidding! You really expect an accurate, thoughtful response to this? And you want it in time to file your return in a couple days?!$#*&!

Well, I didn't get to Bob's email until now and I suppose he has already filed his return, but I'm hoping you, my readers, can learn something from Bob.

Bob is a financial analyst. Taxes and money are not a foreign language to someone in his profession. Well, here are his "quick questions." By the way, on my website a good while ago I wrote the column How to ask a question: "Quick Advice" or, "What is the meaning of Life." So many people start their inquiries with, I have a "quick question" that my husband assessment is, sure, the quick question is akin to "what's the meaning of life."

So, here's Bob's email and my "quick" answers in bold.

Hi - nothing like cutting it close. I worked as a self-employed consultant (as a financial analyst) last year for 3 different firms - 2 in NY and 1 in Connecticut. I worked on-site about 2/3 of the time and from my home for the remainder. I have a few quick questions:

1) What kinds of expenses can I deduct? All business expenses.
And, Bob, you never requested my free indie expenses list -- just a click away at about 4 or 5 places on my site and blog.

I was reimbursed by the Connecticut firm for mileage and tolls, but this reimbursement was included in the 1099 - where on the tax return would I deduct them? There are several columns and posts on my site and blog about how to handle reimbursed expenses. Click "reimbursed expenses" on the left side of my blog.

2)Since I was traveling from my home office to on-site offices some of the time are these travel expenses deductible (and not counted as commuting?) The room I worked in at home is not exclusively an office (worked on the family computer) so is it safe to assume I can't take a home office deduction, There are several columns and posts on my site and blog about "home office," however, I think you already know that the answer to this is: you don't qualify for home office. and that to be considered business mileage it must be from one business event or location to another.There's but I can still deduct the costs of printer supplies, cell phone, etc.? Yes, you can. And, you know what? It's all in the columns about home office. Just takes a little reading and analysis.

3) Do I need to file state tax returns for CT and NY? (I'm a NJ resident). Yup. For all three states.

Thanks for your assistance. Bob

Bob, I sure hope you filed for an extension and will plan better for next year. Also, hope you didn't mind my using your email as an education tool.

Best regards,
June