June --
I am an Athletic Trainer/Strength & Conditioning Specialists as an indie for 3 years.
I had a question and I could not find the answer on your blog so I was hoping that you might be able to shed some light on something for me. I am an independent contractor, indie, and I donate my time to a not for profit organization. At times this takes me away from scheduled appointments and on out of town trips were I miss my work...can I claim this time as a loss? I know that I cannot deduct my time, but I am losing profit in order to donate my time to the non profit.
Thanks for all of the other great information that you provide on your blog.
Matt
Charleston, WV
Hello Matt,
No deduction. Just extra good-guy points.
Read these posts expenses -- donated services or products .
Best,
June
Showing posts with label FITNESS. Show all posts
Showing posts with label FITNESS. Show all posts
Friday, February 13, 2009
Tuesday, July 15, 2008
Husband-Wife Business: No cheating!
I have been sent many questions about husband and wife working together in a business. A good place to start for info on such joint ventures is my post The Many Advantages of Hiring Your Spouse then follow up with the posts in the category husband-wife business .
Below are some recent questions on the subject.
Dan, from Colorado, has paid the maximum social security limit through his salaried position. Dan’s wife has a home-based business that nets about $50,000 per year. Dan’s CPA , who reminds me of Sammy Segar, the clueless accountant in my book, Self-employed Tax Solutions , has suggested that Dan and his wife file a joint Schedule C: Profit and Loss from Business. This way they could split the profit 50/50.
As you know, you must pay self-employed (SE) tax on your profit. For Dan’s wife that would be about $7,500 [15% of $50,000]. If half that income were Dan’s and had he already met the SE tax maximum that would save them about $3,700. Good idea were it legit.
Dan said: “In the evenings and weekends I work with her on her business.” That doesn’t sound like 50% of the work to me. Maybe 5%. I think the beady-eyed IRS will see this as just a ruse to avoid SE tax. It’s a bad idea.
Sammy Segar came up with another idea for Dan. And I must tell you that this is another one of those let’s-not-treat-indies-like-real-business-people approaches that really make my indie blood boil. Dan reports: “Another comment he made is we might want to go the partnership route and file a partnership return for the business ... he mentioned this because of some statistic he read that says the IRS is greatly increasing their audits of returns filed with a schedule C, something like 1 in 7 are now getting audited.”
OK, let’s see, Sammy is telling Dan to lie about how much work he puts into his wife’s business and put that lie in writing into an expensive partnership return that will benefit the CPA’s bank account and give no honest tax advantage to Dan and his wife.
And a 1 in 7 audit rate! Oh, come on. And even if it were correct, which it is not, honest-to-goodness indies should never fear an audit.
By the way, Dan purchased my book, hoping that the pros and cons of a husband-wife business would be covered. Sorry to say, that topic is not addressed in the basics of Self-employed Tax Solutions. Maybe in the next book!
Mary, a personal trainer / Pilates instructor from San Rafael, CA, has been self-employed since October 2007. In June 2008, her husband reactivated his contractor's license for drywall construction.
Here is Mary’s question as sent to me:
“We are now both self-employed, operating our businesses from our home. We both have a designated room/office for our businesses. I was told that it is ‘better’ from a tax standpoint for one of us to be an employee and one to be self- employed."
Mary then asked something about Social Security tax that I don't quite understand and she also asks if there are any "other other advantages/disadvantages” to the husband-wife business.
Apparently it's not just indies who are confused about SE tax. Sammy Segar, CPA has it all messed up too. SE tax is a combo of Social Security and Medicare tax. In 2008 you pay Social Security tax on income up to $102,000. There is no limit on Medicare tax. You pay Medicare tax on whatever earned income you make.
If you have a job that pays $102,000 you will have met your Social Security tax maximum. If you then make another $100,000 as an indie you are not required to pay any Social Security tax on that income. You will still pay Medicare tax.
So in a husband-wife business SE tax is saved only if the employee-spouse has earned enough income elsewhere to reach the maximum Social Security limit (as in Dan’s situation above). To form a husband-wife business to avoid paying Social Security tax is a fraudulent practice.
I am legitimately creative but I have a hard time figuring out how to make one business of a drywall contractor and a Pilates instructor -- if indeed that’s what Mary is asking.
I didn't print Mary's entire question because it was unclear, which brings me to something I have stressed in all my writing and speaking: Think before you ask – whether speaking or in writing. Make your question as clear as possible. If you don’t, you will not get a clear answer.
-- June
Below are some recent questions on the subject.
Dan, from Colorado, has paid the maximum social security limit through his salaried position. Dan’s wife has a home-based business that nets about $50,000 per year. Dan’s CPA , who reminds me of Sammy Segar, the clueless accountant in my book, Self-employed Tax Solutions , has suggested that Dan and his wife file a joint Schedule C: Profit and Loss from Business. This way they could split the profit 50/50.
As you know, you must pay self-employed (SE) tax on your profit. For Dan’s wife that would be about $7,500 [15% of $50,000]. If half that income were Dan’s and had he already met the SE tax maximum that would save them about $3,700. Good idea were it legit.
Dan said: “In the evenings and weekends I work with her on her business.” That doesn’t sound like 50% of the work to me. Maybe 5%. I think the beady-eyed IRS will see this as just a ruse to avoid SE tax. It’s a bad idea.
Sammy Segar came up with another idea for Dan. And I must tell you that this is another one of those let’s-not-treat-indies-like-real-business-people approaches that really make my indie blood boil. Dan reports: “Another comment he made is we might want to go the partnership route and file a partnership return for the business ... he mentioned this because of some statistic he read that says the IRS is greatly increasing their audits of returns filed with a schedule C, something like 1 in 7 are now getting audited.”
OK, let’s see, Sammy is telling Dan to lie about how much work he puts into his wife’s business and put that lie in writing into an expensive partnership return that will benefit the CPA’s bank account and give no honest tax advantage to Dan and his wife.
And a 1 in 7 audit rate! Oh, come on. And even if it were correct, which it is not, honest-to-goodness indies should never fear an audit.
By the way, Dan purchased my book, hoping that the pros and cons of a husband-wife business would be covered. Sorry to say, that topic is not addressed in the basics of Self-employed Tax Solutions. Maybe in the next book!
Mary, a personal trainer / Pilates instructor from San Rafael, CA, has been self-employed since October 2007. In June 2008, her husband reactivated his contractor's license for drywall construction.
Here is Mary’s question as sent to me:
“We are now both self-employed, operating our businesses from our home. We both have a designated room/office for our businesses. I was told that it is ‘better’ from a tax standpoint for one of us to be an employee and one to be self- employed."
Mary then asked something about Social Security tax that I don't quite understand and she also asks if there are any "other other advantages/disadvantages” to the husband-wife business.
Apparently it's not just indies who are confused about SE tax. Sammy Segar, CPA has it all messed up too. SE tax is a combo of Social Security and Medicare tax. In 2008 you pay Social Security tax on income up to $102,000. There is no limit on Medicare tax. You pay Medicare tax on whatever earned income you make.
If you have a job that pays $102,000 you will have met your Social Security tax maximum. If you then make another $100,000 as an indie you are not required to pay any Social Security tax on that income. You will still pay Medicare tax.
So in a husband-wife business SE tax is saved only if the employee-spouse has earned enough income elsewhere to reach the maximum Social Security limit (as in Dan’s situation above). To form a husband-wife business to avoid paying Social Security tax is a fraudulent practice.
I am legitimately creative but I have a hard time figuring out how to make one business of a drywall contractor and a Pilates instructor -- if indeed that’s what Mary is asking.
I didn't print Mary's entire question because it was unclear, which brings me to something I have stressed in all my writing and speaking: Think before you ask – whether speaking or in writing. Make your question as clear as possible. If you don’t, you will not get a clear answer.
-- June
Thursday, May 22, 2008
Can I deduct the cost of looking good?
Hi,
Rebecca here from Long Beach CA.
I am a health coach and one on one educator, I have been in practice for 7 years. I have heard all sorts of things about write offs in my profession. I do alot of referring to massage therapists, estheticians, trainers, etc etc. I spend alot of money on the things that keep me healthy and looking good, because no one wants health advice from someone who isnt fit and healthy. What types of write offs can I use?
Thank you.
Hi Rebecca,
You can write off the same kinds of things that every other indie can write off. To learn what the are, check out my list of over 100 business expenses. And also be sure to read Is it a deductible business expense? on my website .
Now to address, what I assume is your question on the specific costs of looking good. You say "no one wants health advice from someone who isn't fit and healthy." Well, I hope it comes as no surprise to you, healthy, fit looking people are more successful and or make more money than do those who don't get a clean bill of health. Whether a fashion model on a runway, a realtor trying to sell a home, a sculptor giving a talk on his wood cutting methods, an IT guy crawling under and behind the desks to work on computers, people have more confidence in someone who is attractive and healthy.
And then of course there's the high cost of medical care for unhealthy people which impacts us all.
And the fun stuff, like a healthy grandma who runs a race with her four-year-old grandchild, climbing to the top of a peak to get the best view, the ability to stay awake and alert all night to help out a friend.
That's the long way of saying that you can't deduct the costs of staying healthy. But then again, if the government gave a big tax credit for gym attendance and vegetable consumption we might have a healthier nation.
Cheers,
June
Rebecca here from Long Beach CA.
I am a health coach and one on one educator, I have been in practice for 7 years. I have heard all sorts of things about write offs in my profession. I do alot of referring to massage therapists, estheticians, trainers, etc etc. I spend alot of money on the things that keep me healthy and looking good, because no one wants health advice from someone who isnt fit and healthy. What types of write offs can I use?
Thank you.
Hi Rebecca,
You can write off the same kinds of things that every other indie can write off. To learn what the are, check out my list of over 100 business expenses. And also be sure to read Is it a deductible business expense? on my website .
Now to address, what I assume is your question on the specific costs of looking good. You say "no one wants health advice from someone who isn't fit and healthy." Well, I hope it comes as no surprise to you, healthy, fit looking people are more successful and or make more money than do those who don't get a clean bill of health. Whether a fashion model on a runway, a realtor trying to sell a home, a sculptor giving a talk on his wood cutting methods, an IT guy crawling under and behind the desks to work on computers, people have more confidence in someone who is attractive and healthy.
And then of course there's the high cost of medical care for unhealthy people which impacts us all.
And the fun stuff, like a healthy grandma who runs a race with her four-year-old grandchild, climbing to the top of a peak to get the best view, the ability to stay awake and alert all night to help out a friend.
That's the long way of saying that you can't deduct the costs of staying healthy. But then again, if the government gave a big tax credit for gym attendance and vegetable consumption we might have a healthier nation.
Cheers,
June
Tuesday, April 15, 2008
Hair and Make-up Expenses
Hi June,
I live in Oregon and teach Aerobics and have a question on make-up. I am required to wear makeup for my class and then after class, I promptly shower and re-apply. Often I teach more than one class and do this routine twice. I am blazing through my makeup because of teaching and it's irks me every time I have to buy more.
Can I argue a makeup expense of 50%? I teach 5-6 days a week, sometimes twice a day.
Thanks for your help! I love your website and have referred several friends.
Sincerely Carol from Oregon
Hi Carol,
Here's a similar situation that I addressed in a post about a year ago. The indie had a weekly live television segment and she needed to buy clothing and stay well groomed ( waxing, hair, etc..) and buy special makeup.
My answer:
I wish I had a more preferable answer. Street clothes -- pretty much meaning you could wear them through town and not attract weird looks -- are not deductible.
On make-up and hair I look at what is typically spent for non-professionals and then take a deduction for the additional costs. For instance, typically women get their hair cut and colored every six weeks, so more often that that would be a business expense.
The same with makeup. If you're doing full camera make-up each day or you're buying theatre/professional make-up you're going to spend a lot more than someone who makes up everyday for the office. Other tax pros may treat this deduction in a different way. In cases where there is no yes/no answer, I choose a position that I would be able to argue comfortably.
So in your case, if a woman in a work situation typically applies make-up once a day and you must do it twice a day then 50% seems reasonable.
I live in Oregon and teach Aerobics and have a question on make-up. I am required to wear makeup for my class and then after class, I promptly shower and re-apply. Often I teach more than one class and do this routine twice. I am blazing through my makeup because of teaching and it's irks me every time I have to buy more.
Can I argue a makeup expense of 50%? I teach 5-6 days a week, sometimes twice a day.
Thanks for your help! I love your website and have referred several friends.
Sincerely Carol from Oregon
Hi Carol,
Here's a similar situation that I addressed in a post about a year ago. The indie had a weekly live television segment and she needed to buy clothing and stay well groomed ( waxing, hair, etc..) and buy special makeup.
My answer:
I wish I had a more preferable answer. Street clothes -- pretty much meaning you could wear them through town and not attract weird looks -- are not deductible.
On make-up and hair I look at what is typically spent for non-professionals and then take a deduction for the additional costs. For instance, typically women get their hair cut and colored every six weeks, so more often that that would be a business expense.
The same with makeup. If you're doing full camera make-up each day or you're buying theatre/professional make-up you're going to spend a lot more than someone who makes up everyday for the office. Other tax pros may treat this deduction in a different way. In cases where there is no yes/no answer, I choose a position that I would be able to argue comfortably.
So in your case, if a woman in a work situation typically applies make-up once a day and you must do it twice a day then 50% seems reasonable.
There is more info on indie business expenses in my book Self-employed Tax Solutions .
-- June
Undergarments as a business expense?
June --
I'm from Minneapolis, MN, and I am both a writer and a yoga/writing instructor. I've been an indie for 12 years. My husband is a dancer/actor/performer.
We have a two questions about business expenses. As a yoga instructor, I have specific yoga clothes and undergarments that I purchase for teaching. Deductible, right?
And, my husband has a closet of clothes that he keeps for modeling that he doesn't wear any other time, except for auditions and shoots. Deductible?
And, he has regular chiropractic and bodywork for body maintenance.
Deductible? He isn't being treated for a specific injury, he is treated for his posture, and to keep his "instrument" in good working order.
Thanks! Josie
Hi Josie,
The rule on clothes: If you can wear them as normal streetwear they are not deductible. Women wear tights as everyday clothes, so there goes that deduction. A sports bra, yes. Regular undergarments, no.
Your husband cannot deduct the clothes he buys for modeling.
Here's another way to look at it. A housewife and mom sends her third child off to school, becomes a realtor and buys an entire business wardrobe because the ripped jeans and tank tops won't do. No deduction.
The freelance writer gets a writing gig for an uppity insurance company and must buy a suit. No deduction. [That actually happened to my husband many years ago when he did a freelance project for Chubb insurance.]
A tuxedo or an evening dress for an awards ceremony are deductible.
Chiropractic and bodywork to keep your guy fit are not deductible. Same would be true for the construction worker who has to stay in shape so he doesn't fall off the scaffold or the waitress who gets a foot massage once a month to enable her to stay on her feet 10 hours a day.
Good try!
-- June
I'm from Minneapolis, MN, and I am both a writer and a yoga/writing instructor. I've been an indie for 12 years. My husband is a dancer/actor/performer.
We have a two questions about business expenses. As a yoga instructor, I have specific yoga clothes and undergarments that I purchase for teaching. Deductible, right?
And, my husband has a closet of clothes that he keeps for modeling that he doesn't wear any other time, except for auditions and shoots. Deductible?
And, he has regular chiropractic and bodywork for body maintenance.
Deductible? He isn't being treated for a specific injury, he is treated for his posture, and to keep his "instrument" in good working order.
Thanks! Josie
Hi Josie,
The rule on clothes: If you can wear them as normal streetwear they are not deductible. Women wear tights as everyday clothes, so there goes that deduction. A sports bra, yes. Regular undergarments, no.
Your husband cannot deduct the clothes he buys for modeling.
Here's another way to look at it. A housewife and mom sends her third child off to school, becomes a realtor and buys an entire business wardrobe because the ripped jeans and tank tops won't do. No deduction.
The freelance writer gets a writing gig for an uppity insurance company and must buy a suit. No deduction. [That actually happened to my husband many years ago when he did a freelance project for Chubb insurance.]
A tuxedo or an evening dress for an awards ceremony are deductible.
Chiropractic and bodywork to keep your guy fit are not deductible. Same would be true for the construction worker who has to stay in shape so he doesn't fall off the scaffold or the waitress who gets a foot massage once a month to enable her to stay on her feet 10 hours a day.
Good try!
-- June
Wednesday, April 2, 2008
Exotic Dancer and more ...
I choose questions from indies that I think will be most helpful to the most people. I stay away from questions about unique situations that won't be informative to a lot of you. The situation below, from Michelle, although unique has a number of situations that apply to a lot of indies.
I've noted the distinct points or questions in red.
Hello June!
I have a very complicated question...or so I think! I am confused about pro vs hobby and what deductions I can take for this year.
My main job for the last 15 years has been as an exotic dancer. I am an independent contractor and have always filed a schedule C. I deduct traveling expenses (when working out of town) and supplies (costumes, shoes)
I am also a fine art photojournalist who is currently working on a photo documentary project to be published as a book. I plan on traveling often this year to shoot various photo projects and complete my book. I have also purchased plenty of supplies and equipment in this tax year as well and I have a home office dedicated as my studio. Since this is a ongoing project but I have received no income from it as of yet...can I still deduct travel expenses, equipment costs, home office, etc without profit?
Also, I have third business! I attended a yoga teacher training this year and will start teaching classes out of my studio (separate from the art studio) as of April 1st in my home. I have had to pay for paint, carpet, supplies to ready the studio for classes. I have been working on the studio since January and paying the extra rent myself. I do have a registered business name and business account. I will have very little profit by April 15. So am I entitled to deduct the home studio and start-up costs for the business this year? How about the teacher training and yoga classes as an education expense?
Since I have 3 separate businesses I am afraid of an audit due to all these deductions! What is proper protocol for multiple small businesses? Should I be worried about claiming too many deductions?
I would really like to do my taxes myself to avoid extra costs due to the fact I have paid a lot out of pocket to start up the yoga teaching and for photography equipment.
Your help will be greatly appreciated!
Thanks in advance!
Michelle
Portland, OR
Here's my response to Michelle:
The goal of a hobby is not to make money. The goal may be to have fun, help others, perfect a skill. A hobby may make money. You may deduct expenses only up to the amount of hobby income.
The goal of a business is to make money. As long as making a profit is your goal you don't have to actually make money. You may also enjoy yourself, help others, or master skills or develop a nascent talent. You may deduct all legitimate business expenses regardless the amount of income.
If the business is not yet "open for business" meaning you are not yet ready for clients or customers, then you are still in the start-up stage. Expenses may be deducted when the business opens. You may not deduct education costs to learn a new skill.
You say: I will have very little profit by April 15. April 15 is the first deadline for filing a tax return. It is, however, immaterial to income or profit. Calendar year taxpayers -- that's just about all of you -- group income and expenses from January 1 through December 31.
It would be unwise, time- and money-wasting to try to do your own tax return in order to save accounting fees. You have a complex three-indie-business tax situation; you lack knowledge of basic indie tax treatment; you have not had the time, or the rigor, to review my site and blog where you could have found all the answers to your questions. Would you teach yoga without first studying it? I wouldn't .
Put your time and energy into your businesses -- yoga classes, dancing, photos -- you'll earn more money, achieve success, and have the money to pay a tax pro.
I've noted the distinct points or questions in red.
Hello June!
I have a very complicated question...or so I think! I am confused about pro vs hobby and what deductions I can take for this year.
My main job for the last 15 years has been as an exotic dancer. I am an independent contractor and have always filed a schedule C. I deduct traveling expenses (when working out of town) and supplies (costumes, shoes)
I am also a fine art photojournalist who is currently working on a photo documentary project to be published as a book. I plan on traveling often this year to shoot various photo projects and complete my book. I have also purchased plenty of supplies and equipment in this tax year as well and I have a home office dedicated as my studio. Since this is a ongoing project but I have received no income from it as of yet...can I still deduct travel expenses, equipment costs, home office, etc without profit?
Also, I have third business! I attended a yoga teacher training this year and will start teaching classes out of my studio (separate from the art studio) as of April 1st in my home. I have had to pay for paint, carpet, supplies to ready the studio for classes. I have been working on the studio since January and paying the extra rent myself. I do have a registered business name and business account. I will have very little profit by April 15. So am I entitled to deduct the home studio and start-up costs for the business this year? How about the teacher training and yoga classes as an education expense?
Since I have 3 separate businesses I am afraid of an audit due to all these deductions! What is proper protocol for multiple small businesses? Should I be worried about claiming too many deductions?
I would really like to do my taxes myself to avoid extra costs due to the fact I have paid a lot out of pocket to start up the yoga teaching and for photography equipment.
Your help will be greatly appreciated!
Thanks in advance!
Michelle
Portland, OR
Here's my response to Michelle:
The goal of a hobby is not to make money. The goal may be to have fun, help others, perfect a skill. A hobby may make money. You may deduct expenses only up to the amount of hobby income.
The goal of a business is to make money. As long as making a profit is your goal you don't have to actually make money. You may also enjoy yourself, help others, or master skills or develop a nascent talent. You may deduct all legitimate business expenses regardless the amount of income.
If the business is not yet "open for business" meaning you are not yet ready for clients or customers, then you are still in the start-up stage. Expenses may be deducted when the business opens. You may not deduct education costs to learn a new skill.
You say: I will have very little profit by April 15. April 15 is the first deadline for filing a tax return. It is, however, immaterial to income or profit. Calendar year taxpayers -- that's just about all of you -- group income and expenses from January 1 through December 31.
It would be unwise, time- and money-wasting to try to do your own tax return in order to save accounting fees. You have a complex three-indie-business tax situation; you lack knowledge of basic indie tax treatment; you have not had the time, or the rigor, to review my site and blog where you could have found all the answers to your questions. Would you teach yoga without first studying it? I wouldn't .
Put your time and energy into your businesses -- yoga classes, dancing, photos -- you'll earn more money, achieve success, and have the money to pay a tax pro.
Saturday, October 20, 2007
Jazzercise Franchise
Hi June,
I stumbled on your site while looking for self employment tax info and found the article pertaining to whether a person is an employee or self employed. I read that it is about the relationships.
I stumbled on your site while looking for self employment tax info and found the article pertaining to whether a person is an employee or self employed. I read that it is about the relationships.
Well, I am a franchisee without owner status. The students pay the owners and the owners pay me a set amount per class. The owners decide which times and days I can teach, I am given music and choreograph notes and DVD's from Jazzercise Inc. to follow with approved routines. I cannot make up my own. Corporate determines how long my class is, the structure of my class, and even how long I can stretch in between routines. I am monitored for compliance once a year by Corporate and failing would mean termination. They require that I have CPR certification and pay liability insurance or again termination would ensue. The owners pay the rent, decide the class fee, maintain the membership, and promotions and all advertising. I own my microphone, because I choose not to use theirs, they own the mixer, speakers, weights, and mats that both I and the students use. I do not have my own business cards and had to sign a no compete document so that I cannot teach another aerobic format anywhere else.
Should I be filing self-employment tax? My owners do not give me any tax forms to file, even when asked. I did get the grand total of earnings for the year in writing after much prodding, (the total being $5730) and they do not report income paid to me to the IRS. What do you think? I believe I have the option of getting paid a percentage of the center instead of a base rate. Would that make a difference? So again, employee or self employed?
Thank you in advance for all your help!
Carol from Oregon
Hello Carol,
Franchise laws have different elements than those for indies. There are many questions in your email and your situation is too specific for a general response.
Here's a site that might point you in the right direction. It is from Jazzercise explaining its two franchise types:
http://www.jazzercise.com/become_franchise.htm
Thank you in advance for all your help!
Carol from Oregon
Hello Carol,
Franchise laws have different elements than those for indies. There are many questions in your email and your situation is too specific for a general response.
Here's a site that might point you in the right direction. It is from Jazzercise explaining its two franchise types:
http://www.jazzercise.com/become_franchise.htm
I assume you would have entered into a franchise with the advice of an accountant or attorney. You should contact that pro and get your situation cleared up. And maybe there are some Jazzercise folks who will read this and pass on some info to you.
Best,
June
Best,
June
Tuesday, October 9, 2007
Medical or Business Expense
June,
I have been a personal trainer for 2 years. I am a veteran working in the health/fitness industry and have needed alternative and out-of-pocket medical treatments (acupuncture, physical therapy, massage) for a service-connected orthopedic problem (for which I do have a disability rating).
Working with these other health care professionals has also been a help in furthering my skills in working with my clients. How/which of these should be taken as medical expenses and/or training/education for my work?
Thanks a bunch, "Ron"
Hi Ron,
Wish I could give a different answer but ... it all is medical expense. Especially since you have a disability rating. Were you "healthy" and had decided to do 10 sessions with another pro as training or some other learning experience then I'd OK the business expense.
Best,
June
I have been a personal trainer for 2 years. I am a veteran working in the health/fitness industry and have needed alternative and out-of-pocket medical treatments (acupuncture, physical therapy, massage) for a service-connected orthopedic problem (for which I do have a disability rating).
Working with these other health care professionals has also been a help in furthering my skills in working with my clients. How/which of these should be taken as medical expenses and/or training/education for my work?
Thanks a bunch, "Ron"
Hi Ron,
Wish I could give a different answer but ... it all is medical expense. Especially since you have a disability rating. Were you "healthy" and had decided to do 10 sessions with another pro as training or some other learning experience then I'd OK the business expense.
Best,
June
Thursday, March 22, 2007
Education Expenses
June,
What blessings to find your site! I have a question regarding deducting education costs. I returned to grad school recently (financed by student loans) while continuing to make my living as an indie yoga instructor and writer of web content on yoga and health. I've been getting Tuition Statements from my school and wonder how I'm suppose to use these to reduce my taxes? My studies are in Asian Philosophies and so absolutely related to my work.
Many thanks.
Meg
Hello Meg,
You can get a tax benefit from education expenses, however, there are several different ways to get the benefit -- from credits to actual deductions. Which is the most beneficial depends on your entire tax return -- all the income, expenses, exemptions, etc. And you need to be careful so that you don't accidentally take both benefits. Only one is allowed.
To explain how that works would be instruction in tax return preparation -- much too complicated for an email or post.
Education expenses are explained in depth in my book, Self-employed Tax Solutions, however, keep in mind that I think indies should not do their own returns. Your job is to have all the info and then take it to a competent tax pro who knows tax law and can get get you the lowest tax possible.
Best,
June
What blessings to find your site! I have a question regarding deducting education costs. I returned to grad school recently (financed by student loans) while continuing to make my living as an indie yoga instructor and writer of web content on yoga and health. I've been getting Tuition Statements from my school and wonder how I'm suppose to use these to reduce my taxes? My studies are in Asian Philosophies and so absolutely related to my work.
Many thanks.
Meg
Hello Meg,
You can get a tax benefit from education expenses, however, there are several different ways to get the benefit -- from credits to actual deductions. Which is the most beneficial depends on your entire tax return -- all the income, expenses, exemptions, etc. And you need to be careful so that you don't accidentally take both benefits. Only one is allowed.
To explain how that works would be instruction in tax return preparation -- much too complicated for an email or post.
Education expenses are explained in depth in my book, Self-employed Tax Solutions, however, keep in mind that I think indies should not do their own returns. Your job is to have all the info and then take it to a competent tax pro who knows tax law and can get get you the lowest tax possible.
Best,
June
Friday, February 23, 2007
New York City Tax Professional Needed
June --
I am an Actress/Exercise Instructor. I have not yet read your book, Self-employed Tax Solutions, but am planning to do so. Your website/blog are both great. Any classes you will be teaching in NYC? If not, could you recommend -- classes or a colleague? I have worked with an accountant for several years but would like someone knowledgeable in Quicken and financial planning. Thanks in advance!
Katie
HI Katie,
So glad you like my site & blog. Thanks for letting me know.
I am currently in upstate New York but have no planned speaking gigs in NYC. Finding a tax pro knowledgeable about indie taxes is always difficult. I don't know one on NYC although I had an office there for many years before heading west. You might call SAG [Screen Actors Guild] for a recommendation. Finding someone will take some work on your part. These posts on my blog may help in making your choice. -- if you've not already seen them:How to pick a Tax Professional
It's tax time so ... beware of bad advice from the real-life Sammy Segar, CPA
Clueless Professional Accountant (CPA) Says You Can’t Deduct a Gift to Your Mother Pick a Tax Professional: Experience or Price
Perhaps someone who reads this can point you to an appropriate tax pro.
Best regards,
June
I am an Actress/Exercise Instructor. I have not yet read your book, Self-employed Tax Solutions, but am planning to do so. Your website/blog are both great. Any classes you will be teaching in NYC? If not, could you recommend -- classes or a colleague? I have worked with an accountant for several years but would like someone knowledgeable in Quicken and financial planning. Thanks in advance!
Katie
HI Katie,
So glad you like my site & blog. Thanks for letting me know.
I am currently in upstate New York but have no planned speaking gigs in NYC. Finding a tax pro knowledgeable about indie taxes is always difficult. I don't know one on NYC although I had an office there for many years before heading west. You might call SAG [Screen Actors Guild] for a recommendation. Finding someone will take some work on your part. These posts on my blog may help in making your choice. -- if you've not already seen them:How to pick a Tax Professional
It's tax time so ... beware of bad advice from the real-life Sammy Segar, CPA
Clueless Professional Accountant (CPA) Says You Can’t Deduct a Gift to Your Mother Pick a Tax Professional: Experience or Price
Perhaps someone who reads this can point you to an appropriate tax pro.
Best regards,
June
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