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What can you write off on your taxes 2012

  • If you are going to deduct gambling losses, you must have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings;
  • Again, refer to Pub 463 for all the details;
  • This includes a second line in your home or a cellphone for business use.

By Nellie Akalp 2012-03-15 16: If you have freelance income to report by U. But you can still find plenty of opportunities to cut your tax bill. As a sole proprietor, you can deduct a lot of your expenses, such as the cost of a computer, office supplies and work-related travel. You may even be able to deduct your health insurance premiums and part of your rent or mortgage.

  1. The payer must give you a W-2G if you receive.
  2. If applicable, take this deduction on Form 1040 Line 29. Publication 463 advises you which expenses can be deducted.
  3. You can find a Self-Employed Health Insurance Deduction worksheet in the instructions for Form 1040 scroll down to line 29. Refer to Publication 535 for more details on business expenses.
  4. Tax Credits Do not confuse tax deductions with tax credits. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos.
  5. The same graduated percentages apply to each tax bracket, so that you pay different percentages on each level of earnings.

Read on to learn more about some of the key deductions available to freelancers, self-employed taxpayers with small or startup businesses, or other sole proprietors. Health Insurance As part of the Small Business Jobs Actself-employed taxpayers, including sole proprietors reporting income on Schedule C, may be able to deduct the cost of health insurance for themselves and their families. If applicable, take this deduction on Form 1040 Line 29. You can find a Self-Employed Health Insurance Deduction worksheet in the instructions for Form 1040 scroll down to line 29.

How Much Tax Do You Get Back for Every Deduction?

Home Office If you work from home, you may be entitled to deduct a portion of your housing costs. If you use a spare room 180 sq. Direct costs relating to the space, such as repairs or paint, can also be deducted. For a full explanation of the home office deduction, including eligibility and record-keeping requirements, check out IRS Publication 587.

Monthly Utilities If you are taking the home office deduction, you may also deduct a percentage of your heating and electricity bills. Additionally, phones used for business are legitimate self-employed deductions.

These 10 tax deductions should be on your radar

This includes a second line in your home or a cellphone for business use. Office Supplies You can deduct the cost of equipment you buy for your business, such as filing cabinets, desk, printers and office supplies like pens and envelopes. What about your laptop and tablet?

If they are used for your freelance or small business, they can be deducted. However, if you only have one laptop and use it partly for business, and partly for personal purposes, you can only deduct the percentage of its business use e.

Refer to Publication 535 for more details on business expenses.

Five Important Tips on Gambling Income and Losses 2012

Autos and Commuting In general, commuting is considered personal use and is not deductible. However, you can deduct travel to meet a client, purchase business supplies or conduct research.

  • Instead, tax deductions reduce your taxable income;
  • As a sole proprietor, you can deduct a lot of your expenses, such as the cost of a computer, office supplies and work-related travel;
  • By Nellie Akalp 2012-03-15 16;
  • If you are going to deduct gambling losses, you must have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings;
  • Most major cities will qualify for a higher standard meal allowance; per diem rates are listed in Publication 1542;
  • Autos and Commuting In general, commuting is considered personal use and is not deductible.

Travel expenses include any public transit, parking and tolls. Again, refer to Pub 463 for all the details.

  • Instead, tax deductions reduce your taxable income;
  • If you have freelance income to report by U;
  • You may even be able to deduct your health insurance premiums and part of your rent or mortgage;
  • Most major cities will qualify for a higher standard meal allowance; per diem rates are listed in Publication 1542;
  • Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos.

Travel If your trip was primarily for business purposes, for example, to meet with a potential client or attend a conference, you can deduct certain expenses.

You should be able to fully deduct any transportation costs plane tickets, taxis, airport parking, etc. Most major cities will qualify for a higher standard meal allowance; per diem rates are listed in Publication 1542. Publication 463 advises you which expenses can be deducted.

Retirement Plans Self-employed business owners can stash money away in tax-deferred retirement plans.

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To qualify for your 2011 tax return, you needed to have set up a plan by Dec.