Tax Deductions for Accounting Professionals
It’s the end of March. Have you filed your tax return yet? In the rush to prepare tax returns for clients, accountants and members of the accounting firm staff, sometimes forget they need to file their own tax returns. To help get you started, AccountingWEB, with the help of Frontline Publishers, Inc., who produce a series of reports on tax deductions by profession, has put together a list of deductions available to most accountants.
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The amounts spent or incurred to purchase supplies used regularly in your work, or that are ordinary and necessary to your business during the 2005 tax year but for which you were NOT reimbursed, may be deductible. For accountants such supplies may include:
- Accounting, Business, and Legal Forms
- Address Books/Binders
- Appointment Books
- Bill and Coin Wrappers
- Bank Bags
- Cash and Check Boxes
- Legal and Note Pads
- Counterfeit Detection Pens and Highlighters
- Journals, Ledgers and Organizers
- Paper and Graph Paper
- Paper Clips and Pens/Pencils
- Petty Cash and Message Forms
- Receipt, Record and Sales Books
- Rulers, Scissors and Tape
- Tax Forms
- Other supplies used in your work
In addition, printing, duplicating and mailing expenses may also be deductible. Some small tools, such as bill counters, coin counters, calculators and similar tools used in your work, are possible deduction candidates.
Of course, all of these deductions are for items used by accounting professionals in the execution of their duties. The deductions available to accountants are not limited to the supplies and services they need to do their jobs and pursue their careers. As with any other individual, accountants may be able to deduct the cost of:
- Treatment and care from a Chiropractor or Osteopath.
- Contact lenses and/or glasses.
- Health and long term care insurance premiums
- Medical services, medicines and prescription drugs
- Memberships dues paid to a qualified charitable organization
- Out-of-pocket expenses incurred while giving services to a qualified charitable organization
- State and local sales tax
- Mandatory contributions made to state benefit funds providing protection against loss of wages
- Fees and charges that are expenses of your trade or business, or of producing income
- Appraisal fees
- Tax preparation fees.
If you are self-employed, you may also be able to deduct half the self-employment tax.
As always, please consult your own tax or financial advisor, as well as the appropriate publications from the Internal Revenue Service (IRS), to determine whether or not you qualify for the deductions listed above or any additional deductions not listed here. This list is not intended as tax advice, nor is it a complete list of all potential deductions available to accountants and accounting professionals.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.