Well, I could if I itemized on my taxes. There are a ton of expenses that I could write off. Things like my internet usage and even my cell phone bill. Since I have a small home-based business these things are deductible.
However my standard deduction is larger than what I could get by itemizing. I really wish I could do both. I need all the money back that I can get.
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3 comments:
Sabrina-
If you have a home-based business you do not need to “itemize” to deduct your business expenses. Schedule A of federal Form 1040, where you would “itemize”, is only for deductible personal expenses such as state and local income or sales tax, real estate tax, mortgage interest, contributions to church and charity, investment expenses and the business expenses of an employee.
A self-employed individual reports his/her income and expenses on Schedule C. This is where you would deduct the fees for internet and cell phone usage that apply to your home-based business. You can deduct all these expenses on Schedule C and still claim the “standard deduction”!
The Wandering Tax Pro
Robert,
WOOT!!! Thank you. I will definitely start reading up on this and getting all of my paperwork in order.
See you do learn something new everyday.
Sabrina
Sabrina-
Email me at rdftaxpro@mail.com and I will send you a free sample issue of my newsletter for Schedule C filers.
The Wandering Tax Pro
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