SCHEDULE A ITEMIZED DEDUCTIONS Must exceed: $5,450.00 for singles $10,900 married filing joint, and $8000.00 head of household Medical expenses must exceed 10% of gross income AND NOT PRE-TAX Doctor Hospital Drugs Dentist Glasses Mileage @ $.24/mi Hotels @$50.00/person Insurance premiums Medical necessities: vans, home modifications, special equipment, (anything ordered by a Doctor that is necessary to your health unless specifically exempted by the IRS) Taxes: State income Real estate- Personal property Home Mortgage Interest for up to two homes: Mortgage Home equity (if does not exceed value of home & points may not be deductible) Points charged (to purchase or improve home on home equity) Mortgage Insurance Premiums Investment interest used to purchase investment property Charitable Gifts/Volunteer work: Contributions by cash or check All cash contributions require cancelled check, bank/credit card receipt, receipt from org Goods or services (actual cost/ $.14 per mile) Single donations of over $250.00 require an acknowledgment from the qualified organization *Acknowledgment must: be written, list contribution amount, goods or services provided and a good faith estimate of the value of those services, and statement of intangible religious benefit such as admission to a religious ceremony or activity. An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Non-cash donations over $500.00 require you to file a separate tax form with your return and have the documentation listed above Out-of-pocket expenses require adequate records: date, what the item was, value or cost(s), goods or services provided by organization, and *acknowledgment (see above). Individuals 70/+ can donate directly from an IRA/retirement account without this being counted as income and still get deduction for a charitable contribution Casualty and Theft Losses: (not covered by insurance, limited deductions) Misc. Deductions: less 2% of adjusted gross income Tax preparation fees Safe deposit box Legal and accounting related to taxes Safety equipment, tools, uniforms, special clothing etc. Union dues, professional organizations, publications, business mileage(Form 2106) Required physical examinations Employment agency fees AGENT FEES Moving expense adjustment: travel, meals, lodging, looking for work, moving expenses, etc- (must be 50 miles closer to job!) ©Steven E. Burns, 2013-2014 information from IRS Publications |
Business Expenses: Advertising Bad debts Mileage and auto expenses Travel expenses Commissions and fees Depreciation Interest Insurance Medical insurance (ADJUSTMENT on Form 1040) Legal and professional services Repairs and maintenance Supplies Taxes and licenses Utilities Wages and benefits Meal and Entertainment Expenses: (50% deductible) KEEP YOUR RECORDS!!! I CANNOT STRESS ENOUGH Meals, entertainment, for clients or fellow workers when you discuss work Gifts of $25 dollars or less, parties, etc Keep place, cost, and business purpose (keep everything) Petty cash can be used for small expenses usually $25 or less KEEP YOUR RECORDS!!! I CANNOT STRESS ENOUGH Computer and cellular phones are deductible business expenses Travel expense can claim daily meals of $42 and incidentals and hotel room Travel expense is $.565 per mile Keep date, place, and business purpose List all property used in business for depreciation purposes…% of business use if less than 100% A business can lose money for 2 of 5 years, but if losses occur after that appreciation of assets, or proof of attempt to make profit can be required by IRS, so records are essential OFFICE IN THE HOME DEDUCTION YOU CAN QUALIFY FOR OFFICE IN THE HOME IF YOU USE AN AREA OF YOUR HOME FOR AN OFFICE EXCLUSIVELY-FOR PAPER WORK, PHONE CALLS, PLANNING, ETC. THIS ALLOWS YOU TO CLAIM MILEAGE FROM THE TIME YOU LEAVE HOME UNTIL YOU RETURN AS LONG AS THE MILEAGE IS BUSINESS RELATED (i.e. DEPOSITS, TO JOBS, VISITS TO CLIENTS, ETC) KEEP RECORD OF DATE, PLACE VISITED, BUSINESS PURPOSE, AND MILEAGE YOU CAN USE HOURS AND AREA USED FOR DAYCARE AS A DEDUCTION ALSO THE TAX COURT HAS ALLOWED AN AREA PARTIALLY AS A BUSINESS USING THE SAME GUIDELINES AS A DAYCARE. NEW IRS RULE ALLOWS A "SAFE HARBOR" DEDUCTION BASED ON AVERAGE COSTS OF A HOME TO DETERMINE OFFICE IN THE HOME DEDUCTION Travel expense is $.565 per mile and you can use more than one vehicle as long as you use one at a time. If you have an employee driving a vehicle and you drive one also, you cannot claim the mileage rate-you must claim actual expenses. You can get around this by paying the employee to use his own vehicle, reimbursing at the rate of $.565 per mile. Reimbursements are not taxable!!! Also see SCH C information and FORM 2106 for additional specific information ©Steven E. Burns, 2003-2014 information from IRS Publications |
INFORMATION TO HELP PREPARE TAX YOUR RETURN |
THE INFORMATION PRESENTED HERE IS ACCURATE TO THE BEST OF MY KNOWLEDGE; HOWEVER, YOUR TAX SITUATION MAY BE DIFFERENT AND YOU SHOULD SEEK THE SERVICES OF A COMPETENT TAX PROFESSIONAL TO DETERMINE THE TAX CONSEQUENCES OF YOUR PARTICULAR SITUATION! |
IRS FORMS |
CHURCHES AND MEMBERS OF THE CLERGY AUDIT GUIDE FOR CLERGY GUIDE FOR CHURCHES INCOME TAX GUIDE FOR CLERGY |
FORM 1040 |
EXCEL SPREADSHEETS TRAVEL FORM MONTHLY TRAVEL YEARLY TOTALS BY MONTH 1099 PAYMENTS W-2 PAYMENTS ASSET LIST |
information from IRS Publications KEEP YOUR RECORDS!!! I CANNOT STRESS ENOUGH Must itemize deductions and is subject to 2% adjusted income deduction FEDERAL TAX DEDUCTION IS 56.5 CENTS PER MILE UNLIMITED MILEAGE YOU CAN DEDUCT $42.00 FOR MEALS, PLUS TRANSPORTATION EACH DAY FOR BUSINESS EXPENSES (out of town) OR $125/DAY in meals, hotel & incidentals -$42.00 (or $125 per day for all expenses) FOR MEALS WHEN YOU SPEND THE NIGHT (out of town) -$8.75 (or 31.25 for all expenses) EACH 1/4 DAY (12AM-6AM, 6AM-12N, 12N-6PM, 6PM-12M) -LEAVE AT 5:00 AM AND RETURN AT 11:00 PM AND CLAIM 1 DAY ($35.00), (if you have to stop for substantial sleep or rest) (or $125 per day for all expenses) -YOU CAN SUBTRACT REIMBURSEMENTS AND CLAIM THE REST!! -You can deduct the cost of business meals (when you go out to eat and discuss business or out of town overnight) -MEALS AND ENTERTAINMENT ARE 50% DEDUCTIBLE -Transportation workers may qualify for 80% deduction if “hours of service” limits apply -You could possibly deduct the cost of meals if you are required to eat while you supervise students; however, I cannot find a specific example of this, but it does seem to fit the criteria for a business meal. -Law enforcement officers can deduct meals while on duty (8hrs=1/3 day or $11.67) YOU CAN DEDUCT -association dues -liability insurance -subscriptions to professional magazines -books related to the profession -supplies: pencils, paper, etc. Used in your profession -donations to clubs, and other school organizations -home office used mostly for work -extra trips (ball games, graduation, etc.) -postage & telephone -safety equipment for labs -conventions, meetings, etc -gifts up to $25.00 each -travel to a second job!!!! Classes you attend during the day are tax deductible even if they will qualify you for an administrative position or an advanced certificate -cost of course and books -mileage each way 55 cents per mile KEEP A MILEAGE LOG, WE CAN PROVIDE THESE!!! -cost of meal if business association each day (out of town or not) All overnight out of town workshops & classes are deductible [mileage-55 cents/mile, meals, room, food & incidental expenses-($125.00/day or actual expense- including $42.00 for M&I), & registration] The only records you need are (KEEP YOUR RECORDS!!! I CANNOT STRESS ENOUGH) -date of the activity -place -business purpose -number of miles to activity -time left & return Also see SCH C information and FORM 2106 for additional specific information ©Steven E. Burns, 2003-2014 |
PRESENTED HERE IS ACCURATE TO THE BEST OF MY KNOWLEDGE; HOWEVER, YOUR TAX SITUATION MAY BE DIFFERENT AND YOU SHOULD SEEK THE SERVICES OF A COMPETENT TAX PROFESSIONAL TO DETERMINE THE TAX CONSEQUENCES OF YOUR PARTICULAR SITUATION! |