Self-Employment Tax Question: Business Expenses

[Helena]

Well, if you have no business expenses to deduct, what expenses are you worried about not reporting?

Are you sure you are an independent contractor and not an employee?

I am not an employee. I am an independent service provider.
I may not have any business expenses to deduct... but from
what I've been told here... heaven help me if I miss one !


What ? Me worry ? Seems to me there is more than enough
of that here... but I am not worried... I am just asking questions.

 

[RetireeRobert]

I am not an employee. I am an independent service provider.
I may not have any business expenses to deduct... but from
what I've been told here... heaven help me if I miss one !


What ? Me worry ? Seems to me there is more than enough
of that here... but I am not worried... I am just asking questions.

PS---I ran a part-time tax practice for many years, and I prided myself on preparing the most accurate tax returns possible for my clients. Much of my success was due to my "questioning" style. I am now a happily retired CPA.

I can tell you would not have enjoyed being a client of mine.

 

[retire@40]

I am not an employee. I am an independent service provider.
I may not have any business expenses to deduct... but from
what I've been told here... heaven help me if I miss one !

What cash expenditures would you not have if you didn't do any independent work?

If they are ordinary and necessary in the course of your work, they are probably deductible and should be reported on your tax return.

One other thing to consider is "materiality." The IRS won't be too concerned if you don't deduct your 35-cent pencil and your 75-cent notepad.

 

[Helena]

PS---I ran a part-time tax practice for many years, and I prided myself on preparing the most accurate tax returns possible for my clients. Much of my success was due to my "questioning" style. I am now a happily retired CPA.

I can tell you would not have enjoyed being a client of mine.

My family escaped the bolsheviks...
not much scares me.

 

[RetireeRobert]

My family escaped the bolsheviks...

Really. Interesting times those. Care to tell more of that bit of history?

 

[Helena]

Really. Interesting times those. Care to tell more of that bit of history?

Only this:

Since my family had migrated to Russia from Germany during the
reign of Tsar Peter [the Great], many of them left for Germany...
some then went on to the USA... many of those who remained in
Germany found themselves back under bolshevik rule after WW 2 !

I was born in Texas... Texans are very much like Cossacks...
fierce and independent... at least, they used to be that way.

 

[RetireeRobert]

Only this:

Since my family had migrated to Russia from Germany during the
reign of Tsar Peter [the Great], many of them left for Germany...
some then went on to the USA... many of those who remained in
Germany found themselves back under bolshevik rule after WW 2 !

I was born in Texas... Texans are very much like Cossacks...
fierce and independent... at least, they used to be that way.

Interesting. My wife's grandmother was also a German who moved to Russia, and eventually to the US. I am not sure of the timeframe, but since my wife's mom was born in the US in 1915, then the German grandma could have been in Russia perhaps in the 1890's-1910 timeframe. I'll have to ask about that.