WHAT ALL CAN MY HUSBAND WRITE OFF IF HE IS A 1099 EMPLOYEE?
My husband just started a job a few weeks ago for a company. He is a traveling salesman who only works on commissions so he is getting paid as a 1099 employee. I have a few questions…he has been tracking his miles that he uses when he has to drive to somebodies house. Usually he is driving about 200 miles a day. Do I also need to keep all of his gas receipts? And when tracking mileage do I need to also keep track of personal mileage or just business mileage? I know that he can write off part of his cell phone bill as well but he has an unlimited plan on it so how would I figure out how much of the monthly bill to use? Can he write off stuff like paper and ink for the printer since he has to print off about 20 pages worth of stuff a day? He also just had to purchase a GPS too can we write that off? Any other recommendations of things he can write off? I just want to make sure I am understanding everything now so when tax time comes around we are ready for it.
Related posts:
about 8 months ago
I am NOT an accountant and next year when you do your taxes I do suggest you use a CPA. but I did get a 1099 myself for 2 years at one point , 1st off put 15-20% away for taxes for you will owe and its better to do estimated taxes I learned that the hard way. Track his miles only for Business, save all gas receipts, I say 50% of his cell phone bill and anything you buy for his business, office supplies etc.. medical bills, any legal fees if you have them can also be written off. if he has an office in your home-an area where he does his work and noone else comes in there I ould not for i always had a 1 bedroom apt you can take a percentage I have a friend who sells avon and uses her back room just as an office and takes 10% of her mortgage off as an expense. if he takes a client out for lunch, dinner , coffee whatver he needs a receipt. if you have car payments and part of your car insurance for His car only can be taken off. again make sure you have a cpa help you it will be worth the money and try to do estimated taxes. hope I helped you
about 8 months ago
Save all receipts and give them to a preparer.
However of the items you just described:
1. There are two ways to deduct vehicle use. One is a standard mileage amount, the other is actual. Only the actual one requires gas receipts. If he drives to their office, he needs to track that mileage as well as it’s called commuting.
2. The IRS won’t allow the phone. Your husband is not spending extra to pay for business calls if he is on an unlimited plan.
3. The GPS is personal and not deductible.
4. Printer and Ink, maybe if the printer lives in the car and *never* gets used for anything else. (Just show that the home computer uses a different printer.)