Independent Contractor -- What is deductible?

[Miss smiley]

Does anyone have any good information/resources as to what is/is not legitimately tax-deductible as an Independent Contractor in the massage therapy line of work?  There seem to be a lot of differing opinions with people I have spoken with and I just wanted to post the question here to see if anyone could lend their advice.  Thanks so much for any information you can provide!  

 

[??? cam ???]

First off I would say contact an expert (CPA).  Second, use the IRS website.  But for the basics as an independant contractor you are your own business so you could deduct any business expense.  Any money you spend to maintain or grow your business.  Now understand that for some expense you may only take a portion (thats why you want to talk to an expert).  But if you can justify it as a expense of the business you should be able to write it off.

 

[Pompal 09.]

If you are a sole proprietor, you can use Turbo Tax for Small Businesses. It has up to date tax laws explanations (in the form of reminders, definitions, and pop up short video clips). Even if you don't use it to actually send in your taxes, its a great info source. Its very user friendly.What I have learned:same as Dale suggests.All legitimate business expenses are deductible - office supplies, advertising & printing expenses, linens & supplies, visa/merchant fees, utilities (if you pay them), equipment & office furniture, poseforum.xxxe for advertisement & mailings, laundry expenditures, lost income (last minute no-shows), charitable donations,...As a sole proprietor, these legit expenses are taken off the top of your income. this can be a double-edged sword. If you are trying to prove income or the health of your business for future business credentials or loans, etc, it can hurt you to show only 10K in income. Typically, your first year in business will look very lean, even if you make a nice wage, because of your table purchase, etc, etc.  Big expenses like that (and a new computer system for work, etc) are sometimes written off in total or in installments. a tax pro will help you figure out what qualifies. Turbo Tax has worksheets used to help you through your schedule Cs (profit/loss staement) to help you put these into your tax papers. correctly. Jill/sagetherapist

 

[MJ forever <3]

Great info aralia!For excellent books & online articles regarding running your business and tax  (& legal info)  check out http://www.nolo.comI have purchased a few books from them and have found them all to be very helpful.

 

[Alexandra M]

Thanks for the information everyone!  Day-to-day expenses and business trip information would really be useful Aralia.  I'll check the site with IRS.gov.  Any other info/advice would be greatly appreciated also.  Thanks again everyone.  

 

[Rein]

Kay, the LMT Success Group http://www.lmtsuccessgroup.com has a great Tax Workshop for Massage Therapists.  You may want to consider taking it the next time it's in your area.

 

[darachow]

Thanks again everyone for the great information and site links, they've really helped!  

 

[Zachariah]

Equipment and other assets

Are usually depreciated over 3 -7 years, but new rules may allow you to expense them in the year purchased.

Consult a tax expert for the specifics - may only apply to Inc. and LLC

 

[blood.pixie]

Ok, who is really good at this?
An instructor we had said that couponed/discounts are losses that you can deduct. Anyone know for sure?
EX: Massage costs $70 but they use a $10 off coupon making massage=$60.

Robyn