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Itemized Deductions Schedule-A


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Old 02-22-2014, 01:16 AM
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travel expenses

I am going to take a sales position with a startup company. They cannot reimburse travel until they start making money. Can I write these off on my individual return? Or will I need to claim them under a schedule c? I do a schedule c anyway for all my side incomes.



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Old 02-22-2014, 06:08 AM
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Originally Posted by msmunchie View Post


#1;I am going to take a sales position with a startup company. They cannot reimburse travel until they start making money. Can I write these off on my individual return?



#2;Or will I need to claim them under a schedule c?


#3;I do a schedule c anyway for all my side incomes.
#1;Yes; if you are a W2 EE, then as an EE ,you can deduct work-related travel expenses on your federal tax return. Your employer uses Form W-2 to report your income and federal, state and local income taxes paid for the year. Some of your travel expenses to a job are deductible as itemized expenses on Sch A of 1040; so UNLESS you itemize your deductions, you can’t deduct it. As an independent contractor that receivers a 1099, Being able to claim your business related travel expenses is a major perk of being an independent contractor. But like all other deductions, you will need to have proof that your claims are legitimately for business purposes. You will need written evidence of all expenses when you stay away from home for one or more nights. If your stay away from home is for six or more consecutive nights, you will also need to have travel records.

Travel records can be in the form of a diary or similar document which details the specifics of each individual business activity. These specifics include; the nature of the activity, the date and time the activity began and ended, and the name of the location you undertook the activity. Don’t forget to keep these records for five years!It is important to remember that if your reason for travel is for both business and private purposes, you will need to exclude your private travel from your claim. But the time you spend driving back and forth between your home and your business is considered commuting, and the expenses associated with commuting (either standard mileage or actual expenses) are not deductible as a business expenseYou can deduct half of your meals while on a business trip, and all of your airfare or car expense on a business trip. You also are permitted to deduct any entertainment you pay for when seeing a client


#2;It depend s; aslongas you are a W2 EE, then you do not file Sch C for exp deduction; however, if you are an independent contractor, then you need to file Sch C of 1040 to deduct your expenses.

#3;Then you need to deduct biz related operating exp on your Sch C to reduce your net earnings reported on Sch C line 29/31.



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Old 02-22-2014, 09:59 AM
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Thanks

I will be a w2 ee for that job and still doing contractor work for other projects.



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