2006-02-02 08:47![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
digitaldiscipline
digitaldiscipline[this is a rebroadcast of this post]
I’m going to assume you’ve already entered the formal information that appears on your tax forms: W-2’s (wages), 1099 (interest & dividends), 1098 (mortgage), and so forth.
The trick, as any shady accountant will tell you, is turning expenses into deductions. There are almost certainly more out there, but I’m lazy, and these are easy enough that even the basic online tax engines (such as H&R Block, Turbotax, and their ilk) will probably prompt you for them if you know where to look and how to frame your financial picture.
There are three major loopholes average schmucks like us can exploit to avoid paying too much for our year’s supply of gubmint.
Travel
Most of us have a touch of wanderlust – we go to Convergence, for instance – or we wend our way around the country to see friends and/or family at some time or other. But you know what else you’re doing while you’re checking out so-and-so’s outfit and bitching about your day job? You’re “looking for work.” That’s right, my friends, the fine art of social networking among your peer group can be rationalized as an attempt to further your professional career.
And, because your current employer sure ain’t footing the bill, you can write off 100% of airfare, tolls, and parking (and 50% of hotel rooms, food, and entertainment costs) as “unreimbursed business expenses incurred.” Yes, Swarmy, strippers can be a deduction if you go out of town to ogle ‘em. Now stop dancing like that.
If you drive, rather than trust a pilot or conductor to convey you, mileage allowances are also available, even if you use your car for non-business purposes.
Hobbies
Now that you’ve pored over the last year’s credit card statements to look at all the money you blew on airfare, hotels, and lap dances, you’re probably beginning to fret on how much jack you dropped on silly shit (yes, Sil, this includes your Mission addiction and the Fizzies ;-) . . . it also covers my cravings for computer parts). But, never fear. . . if you spent more than a certain percent of your Adjusted Gross Income (your tax software or handy-dandy incomplete 1040EZ will have this figure) on pursuits that can be arguably considered hobbies, you can deduct them. Video games, home theater stuff. . . if you waste a lot of time and money on it, it’s gotta be a hobby, right? You wouldn’t do that kind of thing out of necessity, would you? ;-)
Drop a ton of cash on home improvement? You’re into restoration! The same sort of tenuous rationalization that got you that low score on the Purity Test is your friend here, too. Don’t go nuts, but most of us have one or two things we spend a silly amount of money on.
Tithes & Donations
As with hobbies, a lot of us worship at the altar of Bacchus, who doesn’t necessarily just hold services on Sunday. *chuckle* Or we offer sacrifice to the gods of gigahertz. With the tsunami and all the hurricanes last year, or the myriad different charitable causes that a lot of folks participate in (or ask for sponsorship for doing), it’s surprising how those things add up. For single donations less than $500, you won’t even need a receipt.
Moving
A bunch of us picked up stakes and moved last year. Repeat after me: “unreimbursed business relocation expense.” Truck rental, storage fees, gas, lodging, mileage on your car. . . all of it can be deducted. The caveat here is that you had to move because your old home was more than 50 miles from your new place of employment.
Tax Prep Fees
That’s right – whatever you paid last year to whomever you suckered into doing your taxes, you get to deduct it this time around. Me? My time’s worth about fifty to a hundred bucks, plus whatever H&R Block puts on my credit card.
If anyone feels like actually paying for my half-assed advice, I take Pay-Pal . . . and it’s all tax-deductible for you next year. ;-)
[Ob. Disclaimer: I'm not a tax or accounting professional. Don't get yourself audited by being too greedy. I owe a debt to the advice of![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
axissilverhand a couple years back for showing me some of this light.]
Deductions for Deviants and Dummies
I’m going to assume you’ve already entered the formal information that appears on your tax forms: W-2’s (wages), 1099 (interest & dividends), 1098 (mortgage), and so forth.
The trick, as any shady accountant will tell you, is turning expenses into deductions. There are almost certainly more out there, but I’m lazy, and these are easy enough that even the basic online tax engines (such as H&R Block, Turbotax, and their ilk) will probably prompt you for them if you know where to look and how to frame your financial picture.
There are three major loopholes average schmucks like us can exploit to avoid paying too much for our year’s supply of gubmint.
Travel
Most of us have a touch of wanderlust – we go to Convergence, for instance – or we wend our way around the country to see friends and/or family at some time or other. But you know what else you’re doing while you’re checking out so-and-so’s outfit and bitching about your day job? You’re “looking for work.” That’s right, my friends, the fine art of social networking among your peer group can be rationalized as an attempt to further your professional career.
And, because your current employer sure ain’t footing the bill, you can write off 100% of airfare, tolls, and parking (and 50% of hotel rooms, food, and entertainment costs) as “unreimbursed business expenses incurred.” Yes, Swarmy, strippers can be a deduction if you go out of town to ogle ‘em. Now stop dancing like that.
If you drive, rather than trust a pilot or conductor to convey you, mileage allowances are also available, even if you use your car for non-business purposes.
Hobbies
Now that you’ve pored over the last year’s credit card statements to look at all the money you blew on airfare, hotels, and lap dances, you’re probably beginning to fret on how much jack you dropped on silly shit (yes, Sil, this includes your Mission addiction and the Fizzies ;-) . . . it also covers my cravings for computer parts). But, never fear. . . if you spent more than a certain percent of your Adjusted Gross Income (your tax software or handy-dandy incomplete 1040EZ will have this figure) on pursuits that can be arguably considered hobbies, you can deduct them. Video games, home theater stuff. . . if you waste a lot of time and money on it, it’s gotta be a hobby, right? You wouldn’t do that kind of thing out of necessity, would you? ;-)
Drop a ton of cash on home improvement? You’re into restoration! The same sort of tenuous rationalization that got you that low score on the Purity Test is your friend here, too. Don’t go nuts, but most of us have one or two things we spend a silly amount of money on.
Tithes & Donations
As with hobbies, a lot of us worship at the altar of Bacchus, who doesn’t necessarily just hold services on Sunday. *chuckle* Or we offer sacrifice to the gods of gigahertz. With the tsunami and all the hurricanes last year, or the myriad different charitable causes that a lot of folks participate in (or ask for sponsorship for doing), it’s surprising how those things add up. For single donations less than $500, you won’t even need a receipt.
Moving
A bunch of us picked up stakes and moved last year. Repeat after me: “unreimbursed business relocation expense.” Truck rental, storage fees, gas, lodging, mileage on your car. . . all of it can be deducted. The caveat here is that you had to move because your old home was more than 50 miles from your new place of employment.
Tax Prep Fees
That’s right – whatever you paid last year to whomever you suckered into doing your taxes, you get to deduct it this time around. Me? My time’s worth about fifty to a hundred bucks, plus whatever H&R Block puts on my credit card.
If anyone feels like actually paying for my half-assed advice, I take Pay-Pal . . . and it’s all tax-deductible for you next year. ;-)
[Ob. Disclaimer: I'm not a tax or accounting professional. Don't get yourself audited by being too greedy. I owe a debt to the advice of
axissilverhand a couple years back for showing me some of this light.]
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
(no subject)
You should add in the Tithes & Donations that all the crap you schlepped to Goodwill/Salvation Army is deductible. Just add up the thrift-store sales cost of all the items & write that on the receipt Goodwill/SA gives ya.
In Tax Prep Fees, add that the cost of tax prep software is also deductible.
Pretty clear what *I* was doing last nite ;-)
(no subject)
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Later, it specifically says you can't deduct home repairs, but really, that gets included in the capital gains allowance when you sell. One could argue that it's a hobby, but I'd be loath to try it myself.
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