HERRERA TAXES AND SERVICES

708 W. Swain Rd. Stockton, CA 95207 (209) 565-5262

708 W. SWAIN RD
STOCKTON, CA 95207
ph: 209-594-0570
fax: 866-830-3014
alt: 209-483-0888
sandra@herrerataxesandservices.com

Work Related Deductions

Accounting Clerk Tax Deduction Checklist

If you work in an office as a secretary, administrative assistant, or accounting or data entry clerk, you should receive Form W-2, Wage and Tax Statement , from your employer.

You may be able to reduce your taxes by deducting unreimbursed, job-related expenses. You should keep receipts to substantiate these expenses. Examples of some of the items you may be able to deduct include:

Subscriptions to publications and journals related to your work
Dues for professional associations
Job-related equipment or supplies that are replaceable within one year
State or local government regulatory fees, licenses, or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing

You also may be able to deduct work-related education courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses, courses on current developments, and vocational courses. However, education that qualifies you for a new trade or business or that helps you to meet the minimum education requirements of your present trade or business is not deductible. For example, an administrative assistant cannot deduct the expenses of going to a college to obtain a biology degree.

CarpenterTax Deduction Checklist

If you are tradesman, including a computer technician, electrician, carpenter, construction worker, forklift operator, mechanic, machine operator, painter, plumber, welder or laborer, you should receive Form W-2, Wage and Tax Statement , from your employer. Payments that you receive for providing trade services, outside of or in addition to your regular job, may be considered income from self-employment and reportable on Schedule C, Profit or Loss from Business. For example, self-employed income would include payments received for installing overhead fans in a residence or wiring backyard lighting for a homeowner. For such arrangements, you may account for the income amounts yourself or you may receive a Form 1099-MISC, Miscellaneous Income . If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

You may be able to reduce your taxes by deducting un-reimbursed, job-related expenses. These expenses may be claimed as miscellaneous Itemized Deductions on Schedule A, Itemized Deductions , or, if attributable to self employment, they may be deductible on Schedule C. You should keep receipts to substantiate these expenses. Examples of some of the items you may be able to deduct include:

Subscriptions to trade journals related to your work
Dues for trade associations or unions
Insurance premiums for protection against liability or wrongful acts
Specialized equipment or tools that are replaceable within one year
Safety equipment such as steel-toed shoes or boots
The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear (for example, specialized coveralls, hard hat, work gloves, safety shoes, and goggles not suitable as street wear)
State or local government regulatory fees, licenses, or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing

You may be able to deduct job hunting expenses you have while you are temporarily unemployed as long as your new job is in the same field of work as your previous job. Holding odd jobs during the period of temporary unemployment does not disqualify you from deducting the job hunting expenses. For example, a plumber working temporarily as a pipe fitter until finding another plumbing job may deduct job hunting expenses.

You also may be able to deduct work-related education courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses, courses on current developments and vocational courses. However, education that qualifies you for a new trade or business or that helps you to meet the minimum education requirements of your present trade or business is not deductible. For example, an electrician cannot deduct the expenses of going to general contractor school to become a contractor.

Additional expenses may be deductible if you are a self-employed tradesman filing Schedule C. Examples of some items you may be able to deduct include:

Business bad debts
Car and truck expenses when getting from one work site to another
Employee salaries or other forms of compensation such as bonuses or commissions
Legal and professional fees, such as accounting or legal advice that are directly related to the operation of your business
Rental expense for business use property such as trailer and equipment rentals
Travel expenses for traveling away from your business home if you are required to be away from home for longer than an ordinary day's work - examples of deductible travel expenses include transportation by car, air, or bus, tolls and parking fees, lodging, and meals (with limitations)
Advertising
Tool and equipment repairs and maintenance
Supplies and incidental materials
Excise taxes and personal property taxes imposed on your business

Construction Worker Tax Deduction Checklist

If you are tradesman, including a computer technician, electrician, carpenter, construction worker, forklift operator, mechanic, machine operator, painter, plumber, welder or laborer, you should receive Form W-2, Wage and Tax Statement , from your employer. Payments that you receive for providing trade services, outside of or in addition to your regular job, may be considered income from self-employment and reportable on Schedule C, Profit or Loss from Business. For example, self-employed income would include payments received for installing overhead fans in a residence or wiring backyard lighting for a homeowner. For such arrangements, you may account for the income amounts yourself or you may receive a Form 1099-MISC, Miscellaneous Income . If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

Subscriptions to trade journals related to your work
Dues for trade associations or unions
Insurance premiums for protection against liability or wrongful acts
Specialized equipment or tools that are replaceable within one year
Safety equipment such as steel-toed shoes or boots
The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear (for example, specialized coveralls, hard hat, work gloves, safety shoes, and goggles not suitable as street wear)
State or local government regulatory fees, licenses, or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing

You also may be able to deduct work-related education courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses, courses on current developments and vocational courses. However, education that qualifies you for a new trade or business or that helps you to meet the minimum education requirements of your present trade or business is not deductible. For example, an electrician cannot deduct the expenses of going to general contractor school to become a contractor.

Additional expenses may be deductible if you are a self-employed tradesman filing Schedule C. Examples of some items you may be able to deduct include:

Business bad debts
Car and truck expenses when getting from one work site to another
Employee salaries or other forms of compensation such as bonuses or commissions
Legal and professional fees, such as accounting or legal advice that are directly related to the operation of your business
Rental expense for business use property such as trailer and equipment rentals
Travel expenses for traveling away from your business home if you are required to be away from home for longer than an ordinary day's work - examples of deductible travel expenses include transportation by car, air, or bus, tolls and parking fees, lodging, and meals (with limitations)
Advertising
Tool and equipment repairs and maintenance
Supplies and incidental materials
Excise taxes and personal property taxes imposed on your business

Daycare Provider Tax Deduction Checklist

If you are a daycare provider, you may receive Form W-2, Wage and Tax Statement , for income from wages from your employer. Whoever controls what work you do and how you do it is your employer. This could be a person who lives in the home in which you work or an agency through which you work. If you provide daycare services in your home, any payments you receive may be considered self-employment income and are reportable on Schedule C, Profit and Loss from Business . If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

You may be able to reduce your taxes by deducting unreimbursed, work-related expenses. These expenses may be claimed as miscellaneous itemized deductions on Schedule A, Itemized Deductions. If they are attributable to being self-employed, they may be deductible on Schedule C. You should keep receipts to substantiate these expenses.

Examples of some of the items you may be able to deduct include:

The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear
Work-related supplies that you provide, such as markers, crayons, diapers, and wipes
Fees for licensing/bonding
Liability insurance

If you provide services in your home, you may be able to deduct a percentage of the cost of maintaining your home. These costs include rent, utilities, maintenance, property taxes, mortgage interest, depreciation for a home you own and insurance. If you provide meals for the children in your care, you may be able to use a standard allowance for both meals and snacks that you provide, without the need to keep receipts for the food. To claim these deductions, you should keep detailed records of how many days and how many hours each day each child is cared for in your home. You will also need to calculate what percentage of your living space is available to the children.

Factory Worker Tax Deduction Checklist

If you are a production worker, factory worker, or warehouse worker, you should receive Form W-2, Wage and Tax Statement , for income from wages you receive as an employee from your employer.

You may be able to reduce your taxes by deducting unreimbursed, work-related expenses. These expenses may be claimed as miscellaneous itemized deductions on Schedule A, Itemized Deductions, and you should keep receipts to substantiate them.

Examples of some items you may be able to deduct include:

Subscriptions to work-related publications
Union dues
Safety equipment, such as steel-toed boots

You also may be able to deduct work-related education courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses, courses on current developments, and vocational courses. However, education that qualifies you for a new occupation or business or that helps you to meet the minimum education requirements of your present trade or business is not deductible.

Hair Stylist Tax Deduction Checklist

If you are a hair stylist, you may receive Form W-2, Wage and Tax Statement , from your employer. As an employee, you may receive additional income in the form of tips. Any tips you reported to your employer are included with your wages on your Form W-2, Box 1. Although you are not required to report tips of less than $20 per month to each employer, these tips are still subject to income tax. You must also include in income the value of non-cash tips such as tickets and passes and any other tips received but not reported.

If you rent space in a salon, work from home, or travel to your clients, you may be considered self-employed. Self-employed taxpayers report all of their income, including tips, on Schedule C, Profit or Loss from Business .

You may be able to reduce your taxes by deducting unreimbursed, job-related expenses. These expenses may be claimed as miscellaneous itemized deductions on Schedule A, Itemized Deductions , or, if attributable to self employment, they may be deductible on Schedule C. You should keep receipts to substantiate these expenses.

Examples of some of the items you may be able to deduct include:

Cost and cleaning of uniforms that are required as a condition of your employment and that are not suitable for everyday wear (for example, a white service uniform would qualify for deduction, but an employer-required uniform consisting of a white shirt, black pants, and black shoes is not distinctive in the nature of a uniform and would not be deductible)
Fees for occupational taxes or licenses
Employer-required medical exams for which you are not reimbursed
Subscriptions to professional journals and trade magazines related to your work
Supplies such as scissors, combs, smocks, shampoo, and blow driers
Services such as scissors sharpening
Liability or other business insurance

You also may be able to deduct work-related, educational courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses and courses on current developments. Costs including travel for attending courses on creating the latest hair styles or new coloring techniques, for example, would qualify. However, education that qualifies you for a new trade or business, or that helps you to meet the minimum education requirements of your present trade or business are not deductible as a business expense.

Janitor Tax Deduction Checklist

If you are a housekeeper, janitor or custodian, you may receive Form W-2 for income from wages. You receive your Form W-2 from your employer, who is the person or organization that controls the work you do and how you do it. This could be the person who lives in the home in which you work or an agency through which you work. If you provide housekeeping services for someone other than your employer, any payments you receive may be considered self-employment income and may be reportable on Schedule C, Profit and Loss from Business . For example, a housekeeper who cleans someone's home once a week, and provides the cleaning supplies and decides on how to perform the work, may be considered self-employed.

If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

Examples of some of the items you may be able to deduct include:

The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear
Work-related supplies that you provide, such as cleaning solutions
Fees for licensing/bonding

Student Tax Deduction Checklist

Full-time students are not automatically exempt from taxes or from filing a tax return. You may be surprised to find out how much of your income is taxable and how much you owe in taxes if you did not have enough withheld during the year. Even if you are not required to file a tax return, you should consider filing one anyway to obtain a refund for any federal income taxes that may have been withheld from your income. You might even qualify for the Earned Income Credit, a refundable credit that may give you money even if you had no taxes withheld.

Income and any tips you earned from a summer job or a part-time job (such as bartending or as a cashier) you took to help pay for school expenses are taxable. You should receive a Form W-2, Wage and Tax Statement , from each of your employers. Payments for work you do on your own to earn extra money for school, for example painting houses or mowing lawns on the weekend, are considered self-employment income and must be reported on your return.

You may have used distributions from qualified education programs to pay for your education. You should receive a Form 1099-Q, Payments from Qualified Education Programs , reporting these distributions. Earnings on withdrawals you make from your Coverdell education savings account (Coverdell ESA) or from a qualified tuition program (QTP), such as a 529 program, are not taxable if used for qualified higher education expenses.

If you are a degree-seeking candidate, you generally can exclude from income the amount of any scholarship (including athletic scholarships), fellowship, or Fulbright grant used for tuition and fees required for enrollment or attendance, and fees, books, supplies, or equipment required for your courses. You cannot exclude from income any amount used for other purposes, such as room and board, travel, research, teaching, clerical help and equipment. If you are not a degree-seeking candidate, the entire amount received is taxable. You should receive a Form W-2 reporting the taxable amount of your scholarship. Pell Grants, Supplemental Educational Opportunity Grants and Grants to States for State Student Incentives are nontaxable scholarships to the extent they are used for tuition and course-related expenses during the grant period. If you participate in a Reserve Officers' Training Corps (ROTC) program, any educational and subsistence allowances received are excluded from your income, but active duty pay received while attending summer advance camp is included.

You may be able to use your qualified education expenses, such as tuition, to reduce your taxes. These education expenses must not have been paid for using tax-free money; for example those paid for with a nontaxable scholarship or with a tax-free distribution from your Coverdell ESA. You may be eligible for the tuition and fees deduction or either of the education credits: the Hope Credit or the Lifetime Learning Credit. The deduction is available even if you do not itemize. You should receive Form 1098-T, Tuition Statement , reporting the tuition payments you made.

When you graduate, there are other deductions you may be able to take, such as for student loan interest payments and for moving expenses. If you took out a loan to pay for your education expenses, and you are making payments on that loan, you may be able to deduct up to $2,500 of the interest. You should receive a Form 1098-E, Student Loan Interest Statement . In certain circumstances, if your student loan is cancelled, you may not have to include any amount in income.

If you accept a job and need to relocate, qualified moving expenses not reimbursed by your new employer may be taken as a deduction. You should keep receipts to substantiate these expenses. If you meet the requirements, you may be able to deduct the following expenses:

Moving your household goods and personal effects (including in-transit or foreign-move storage expenses)
Traveling (including lodging but not meals) to your new home. If you use your car, you can calculate your car expenses by deducting either:

Your actual expenses, such as gas and oil for your car
The standard mileage rate

Whether you use actual expenses or the standard mileage rate to calculate your expenses, you can deduct parking fees and tolls you pay in moving. You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car.

Teacher Tax Deduction Checklist

If you are a teacher, you may receive a Form W-2, Wage and Tax Statement , from the educational institution employing you. This form reports your income from wages, prizes or awards. Payments that you receive for providing services as a tutor, in addition to your regular job, may be considered income from self-employment and are reportable on Schedule C, Profit or Loss from Business . Examples include tutoring high school students and college students after school or providing music lessons to any individual (voice, piano, drums, guitar, etc) on the weekends. If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

You may be able to reduce your taxes by deducting expenses for tuition incurred in pursuing graduate school or other additional education. If the education is part of your state school board's certification renewal process, it may be deductible. However, if the education is needed to meet the minimum educational requirements to qualify you for a particular position, or if the education will qualify you for a new trade or business, it is not deductible. Changing from an elementary school teacher to a secondary school teacher or changing the subject you teach, from biology to art, for example, is not a change to a new business. Classroom teachers that become guidance counselors or school administrators are also not considered to have changed their trade or business. Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. This is true even if you must get additional education to be certified in another state. Any additional education you need is qualifying work-related education. You may still be able to obtain a benefit from educational expenses that do not qualify for a work-related education deduction if you qualify for the Hope Credit, the Lifetime Learning Credit, the student loan interest deduction, or the tuition and fees deduction.

If you are a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year, you are allowed an above-the-line deduction of up to $250 of qualified expenses you paid during the tax year. This deduction directly reduces your income, and you do not need to itemize deductions to obtain this benefit. Supplies used for home schooling or non-athletic supplies used for courses in health or physical education do not qualify. You may be able to deduct the out-of-pocket cost for supplies that exceed the $250 limit if you itemize your deductions.

Other expenses you may be able to deduct as itemized deductions are:

Subscriptions to professional publications or magazines
Professional dues
Union dues
Fees paid to renew your teaching certificate
Expenses incurred when lecturing, writing or publishing for which you receive no additional compensation other than your regular salary. Note: These expenses may be for research, incidental travel and publication costs. They must be ordinary and necessary expenses for activities related to, and expected for, your position.
Clothing required for work that is not appropriate for everyday wear, such as an art teacher's smock or a dance teacher's jazz shoes
Allowable car expenses incurred when taking mentally handicapped students on an excursion
Cost of materials used for a class play or a class party

You should keep receipts to substantiate all expenses.

Warehouse Worker Tax Deduction Checklist

If you are a production worker, factory worker, or warehouse worker, you should receive Form W-2, Wage and Tax Statement , for income from wages you receive as an employee from your employer.

You may be able to reduce your taxes by deducting unreimbursed, work-related expenses. These expenses may be claimed as miscellaneous itemized deductions on Schedule A, Itemized Deductions, and you should keep receipts to substantiate them.

Examples of some items you may be able to deduct include:

Subscriptions to work-related publications
Union dues
Safety equipment, such as steel-toed boots

You also may be able to deduct work-related education courses or seminars if they meet certain requirements. Education typically meeting the requirements includes refresher courses, courses on current developments, and vocational courses. However, education that qualifies you for a new occupation or business or that helps you to meet the minimum education requirements of your present trade or business is not deductible.

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708 W. SWAIN RD
STOCKTON, CA 95207
ph: 209-594-0570
fax: 866-830-3014
alt: 209-483-0888
sandra@herrerataxesandservices.com