Watch out for bad tax advice!

June --

My gentleman is an architect who went independent in 2007.

He has had a few small projects, plus one client who paid him for the 2 weeks-worth of work, but deducted the taxes like they would for an employee. Now he wants to have his taxes done, and has income from both indie jobs and the one tax deduct situation.

Can he still file as an indie?

He went to an AARP tax advisor who told him that he could not claim expenses over $5,000. max. I do not remember reading anything in your book about maximums - did I miss something?

He has a dedicated room in his house as a home office - there is nothing personal in it at all. He was told that he cannot make any of the % deductions without a certificate from his city (Altamonte Springs FL) showing that the sq ft of the office is his business...?

Thank you for helping us -

Susan
Orlando, FL


Dear Susan,

You have received a lot of wrong info. Get away from your AARP tax advisor, but please don't just walk away, write to AARP, perhaps with a copy of this email, to inform them that they have people with inadequate knowledge advising indies.


Now to your questions:

-- In order for the architect to be paid as an employee he would have to have filled out a W4 rather than a W9 for the client. If he did, then it's his error. Something got lost in translation.

-- Yes, someone can be an employee and an indie. That is often the case with self-employed people who have a "day job."

-- I have no idea where AARP got the $5,000 amount. No such thing!!!!

-- Regarding home office: Local zoning laws such as permits to work out of your home, have no bearing on deducting home office on your tax return. [There is an exception on this for daycare.]

Please let me know what happens with AARP.

-- June