If you saved your receipts you can deduct pretty much everything you spent on the business. As for your home itself, check the rules but I believe you can only deduct a home office if you have customers coming to your house.
I'm no expert, but geneally you'd get a 1099 instead of a W2 if you were self-employed. Best to talk to an expert about this. I know employees can deduct certain job-related expenses such as uniforms, but advertising sounds like it might be a stretch.
Disclaimer: I am not a tax professional either, but I have been self employed since 1978. If you are NOT an employee for tax purposes, it may be wise to have a tax professional do your taxes this year, so you can see how things are handled. After this, you could possibly get by using one of the computer tax programs such as Turbotax or Taxcut. You might try it this year for that matter, those progs ask you lots of questions to make sure it understands your situation, and how yo8ur income was generated. See how it goes, but if you are uncomfortable, then go to a pro.
The form you got probably says that the person who paid you is a Sole Proprietor, not "Member"? It simply means his business is not incorporated, and he does not have a partner, for a partnership. That is immaterial in regards to your tax obligations. Was this the only company that you did work for? Hoiw much supervision did they have over you? Some companies try to claim you are not an emplyoee, but the IRS definition is what counts. You can search their instructions on the internet.
Even though you were paid on a commission basis, it does not in itself mean you were self employed. Did the companyyou work for withhold taxes? It would be on the form you got. If it is a W-2, then it is likely that you are an employee and they did withholding from your check. If it is a 1099 then the company considers you not an employee. and did not withhold. Did they withhold social security? Us "Selfs" take it in the shorts on that, since we pay the entire amount, not just half like when you are an employee.
In any event, I would expect you should be able to deduct unreimbursed business related expenses such as advertising, insurance, office supplies, telephone, internet....the list is long. These things are calculated on Schedules C, D, SE if you are indeed self employed. I think it is on Schedule A if you are an employee, but I am not sure there. If these expenses were used to generate your income, they should be deductible.
According to the book, that portion of your home whcih is "exclusively used for business" is calculated as a percentage of your total square footage of your residence. That percentage is then used to calculate the portion of mortgage/rent, taxes, utilities etc. that is deductible. You do not need to have customers come to your office, but generally must be your only place where you do your office work. Be careful here, "office in the home" is a common redflag to have your return looked at. Doesn't mean an audit necessarily, just a flag. Worth taking, if you qualify for it.
If you kept records of mileage etc. on your vehicle for business, you might also deduct it.
I guess we need more information to really point you in the right direction.
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Sushi
If you saved your receipts you can deduct pretty much everything you spent on the business. As for your home itself, check the rules but I believe you can only deduct a home office if you have customers coming to your house.
**posted by Abigail**
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Jim
I'm no expert, but geneally you'd get a 1099 instead of a W2 if you were self-employed. Best to talk to an expert about this. I know employees can deduct certain job-related expenses such as uniforms, but advertising sounds like it might be a stretch.
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HAPe4me
Disclaimer: I am not a tax professional either, but I have been self employed since 1978. If you are NOT an employee for tax purposes, it may be wise to have a tax professional do your taxes this year, so you can see how things are handled. After this, you could possibly get by using one of the computer tax programs such as Turbotax or Taxcut. You might try it this year for that matter, those progs ask you lots of questions to make sure it understands your situation, and how yo8ur income was generated. See how it goes, but if you are uncomfortable, then go to a pro.
The form you got probably says that the person who paid you is a Sole Proprietor, not "Member"? It simply means his business is not incorporated, and he does not have a partner, for a partnership. That is immaterial in regards to your tax obligations. Was this the only company that you did work for? Hoiw much supervision did they have over you? Some companies try to claim you are not an emplyoee, but the IRS definition is what counts. You can search their instructions on the internet.
Even though you were paid on a commission basis, it does not in itself mean you were self employed. Did the companyyou work for withhold taxes? It would be on the form you got. If it is a W-2, then it is likely that you are an employee and they did withholding from your check. If it is a 1099 then the company considers you not an employee. and did not withhold. Did they withhold social security? Us "Selfs" take it in the shorts on that, since we pay the entire amount, not just half like when you are an employee.
In any event, I would expect you should be able to deduct unreimbursed business related expenses such as advertising, insurance, office supplies, telephone, internet....the list is long. These things are calculated on Schedules C, D, SE if you are indeed self employed. I think it is on Schedule A if you are an employee, but I am not sure there. If these expenses were used to generate your income, they should be deductible.
According to the book, that portion of your home whcih is "exclusively used for business" is calculated as a percentage of your total square footage of your residence. That percentage is then used to calculate the portion of mortgage/rent, taxes, utilities etc. that is deductible. You do not need to have customers come to your office, but generally must be your only place where you do your office work. Be careful here, "office in the home" is a common redflag to have your return looked at. Doesn't mean an audit necessarily, just a flag. Worth taking, if you qualify for it.
If you kept records of mileage etc. on your vehicle for business, you might also deduct it.
I guess we need more information to really point you in the right direction.
~HAP
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