5 Careers, 5 Tax Deductions |
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 April 15 is just around the corner — but a week away! In case you haven't filed yet, or want to know some savvy tips for next year, read on. We're going to show you smart deductions for which you can qualify based on your career.
Whether you have one, two, or five W-2s, the task upon you to maximize your return. Since nothing is certain but death and taxes, why not outwit taxes with a career-specific strategy?
1. Educators
According to the IRS, educators deducted just over $893 million out-of-pocket classroom expenses in the 2005 tax year.
Tax Tips:
- Record receipts for meals and travel for seminars and training conferences, science lab uniforms and school logo items.
- K-12 educators working at least 900 hours a school year are eligible for up to $250 in education expense deductions for unreimbursed purchases.
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2. Nurses
From RN licenses to malpractice insurance to special shoes, nurses qualify for a gamut of deductible expenses.
Tax Tips:
- Look into deducting continuing education (CEUs) expenses if you're getting your license renewed or taking professional development courses.
- Traveling nurses: be sure to document to the IRS your "tax home" (where you pay mortgage or rent).
- Take a look at the equipment you buy and use. Some of it can considered medical, such as a digital camera you use document wounds.
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3. Small Business Owners
Entrepreneurs: The good news is you get a lot of federal support this year. The downside is plowing through so many new deductions and stimulus provisions can be tedious.
Tax Tips:
- Read carefully about the economic recovery bill's provision, which authorizes the Small Business Administration to reduce or waive loan-guarantee program fees.
- Compared to an employee, you can deduct a lot more: business infrastructure, mortgage interest, property taxes, travel, one-time office equipment, and family employee discounts
- Businesses spending less than $800,000 on capital expenditures can deduct up to $250,000 for property purchases like vehicles, machinery and computers.
- Through the Work Opportunity Tax Credit, earn a $2,400 credit for each unemployed military vet or high school dropout that you hire. Also, claim a tax credit of 40% of the first $6,000 in wages paid to such workers.
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4. Criminal Justice Workers
Protecting citizens from crime requires an authoritative presence, by way of uniform or brawn, as well as mobility and communication.
Tax Tips:
- Taxes may cover these expenses if not reimbursed by your department: union dues; cell phone bills for "official capacity" calls; police magazine subscriptions; dry cleaning; and mileage on your own car if it takes you to training or special assignments.
- See if your department has height/weight standards that allow you to deduct your gym membership.
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5. Entertainers
As a creative, you can make the tax code work for you. Here's the key to artsy deductions: Show the IRS that your art is a business, not a hobby.
Tax Tips:
- Tally receipts of pieces, tickets or commissions sold, to show the IRS you're generating revenue.
- Define your taxable income by combining the worth of any prizes, fellowships, or endowments.
- Pay attention to depreciation (Form 4562), your home studio (Form 8829), and gas mileage and meal receipts for gallery openings.
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Project Working Mom Is Back! |
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 Project Working Mom is awarding 285 full tuition scholarships (worth an amazing $5 million) for online study at any of eight accredited, quality schools.
The next deadline to apply is April 27. Visit the Project Working Mom site to apply, learn more about PWM, and get great information about being a working parent, earning a degree, funding your education, and improving your time management skills.
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Meet Ann Marie! |
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 Master's in Healthcare Administration
Seton Hall University
For Sister Ann Marie, a theology instructor in New Jersey, the calling to return to the classroom as a student was nearly as strong as the calling for her to serve God.
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Weekly Highlights |
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 Important Message!
Before we give you your weekly Community highlights, we wanted to
share the exciting news: The eLearners Community got a big facelift! Click the image on the left or a link below to see the brand new design!
This week's highlight from the Online Education Blogs:
A new question from our
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