Avoid large refunds or amounts due.
A large refund means the Government had your money all year, interest-free. A large amount due invites penalties and can be more than an inconvenience.
The tax rules are designed to give an employee a refund if the employer withholds properly. However many things can change this. For example, purchasing a house can generate deductions that in turn cause you to receive a refund. Wis can show you how to turn that refund into a larger monthly paycheck. In contrast, if you and your spouse both work, unless you adjust your withholding, you may end up owing quite a bit. Wis can get this under control. In fact, using Tax Mastery© Wis can identify unexpected tax savings that can reduce your tax bill and put more money in your pocket by decreasing your withholding or estimated taxes. For example, when can you deduct clothing worn on the job?
When can you deduct clothing as a business expense? Wis gets this question frequently. The usual answer is no! An employee can deduct ordinary and necessary expenses of doing his job. However, the Tax Court held that the cost of Ralph Lauren clothing is not deductible even though Ralph Lauren required its salespersons to wear that clothing on the job. Why? Because the clothes are personal since they are suitable for personal use outside the workplace. The Court has given you the solution. For example, Fedex pilots can deduct the cost of their uniforms as well as the cost of cleaning them.
My Advice: To deduct clothing it must not be suitable for personal use outside the workplace. If you wear a uniform or place company logos on the clothing you can probably get away with in.
Action to take: If you still don’t know if you can deduct your clothing, call and ask for a free ½ hour consultation.
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