Tuesday, October 11, 2011

Employee Expenses

In case you've forgotten, Mr. DDA is a policeman.


And he comes home with wild stories of tax preparation from the department.

You didn't know that police officers also double as tax preparers?  No?  Just ask them.  They'll gladly tell you all the deductions they're "allowed" to take.

All I can say is that there is a reason you go to your local police department for car seat checks and NOT tax preparation...that pretty much sums up my opinion of their tax advice.

The reason for our contention is the Employee Business Expense deduction.

Many of us are not self-employed and are not entitled to deduct all of our business expenses.  However, the IRC (Internal Revenue Code) does not exclude you entirely.  If you have expenses for your job that are required and not reimbursed, they are deductible...to an extent.  (As is everything, right?)
Pay parking?  It's deductible.
Mileage/Travel?  It's deductible.
Union dues?  It's deductible.
Uniforms?  It's deductible.
Equipment?  It's deductible...maybe.

Basically, anything you buy for your business that you are deducting, has to be 100% for your business.  Parking - typically is at an office building so obviously is for business.  Mileage travel - if it's not reimbursed and your business does not reimburse, then yes.  (You cannot choose.  If your employer reimburses, even if you don't take it, it's not deductible.  Ever.  Period.)  Union dues - self explanatory. 

Clothing/Uniforms - if it's something you cannot wear anywhere else, it's deductible.  Think scrubs, mechanic jumpsuits, steel-toed boots.  Not suits & ties; you can wear those somewhere else.  (Even if you don't, if it could be worn somewhere else, then no.)

Equipment - Here's the catch-all category.  The thorn in my flesh.  See, policemen have this idea that they can deduct ANYTHING!!!  Like a gun - not their duty gun - just a new gun.  Umm...no.  This is my favorite.  Hear it every year. 

Side story:  Mr. DDA actually came home to me and said, "So-n-so said police officers can deduct one new gun a year under the tax law."  And he actually questioned me when I laughed and said no.  (I think I'm going to start telling him traffic statutes.)

See to deduct the equipment, it has to be REQUIRED for your employment and not provided by your employer.  (If you know of a police department that requires you to have anything they do not furnish, I'd like to hear it...cause in almost 30 years of being a law enforcement family member, I've never heard of it.) 

Another biggie that I hear of is computers.  If your business requires you to have a computer and they do not furnish it, it better be used for the business 100% and you should be able to prove it.

I don't have a tax prep business, so I'm not peddling for business.  But if this situation applies to you, seek the help of a professional. 



And no, a police officer is not a professional!!!

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