Non-Professional Tax Opinions...

[kristenrice]

I do not have a tax professional. I do our income taxes every year with the H&R Block software and I find it to be simple and painless.

I am looking for some opinions regarding "work-related" expenses. DH is a police officer and I am a paramedic. Our gross combined income is approximately $115,000. In order for us to claim any work-related expenses as a deduction, they must total 2% of our gross income ($2300). This has always been a difficult thing to keep track of, but I am thinking about next year. Here are some of the items that I believe we can itemize as "work expenses" since none of them are reimbursed. I want to start saving receipts, etc for next year.

...Work Boots (I get a $120 boot allowance every two years. I used mine in 2013 and my dogs used my boots as a chew toy so I will need new ones)

...Ballistic Vest for me (not required, but I have worn one since 1999 and I don't see a reason to stop now. The company will reimburse up to $200 but the vest is about $500. It is used exclusively for work.)

...Meals: I know we can claim something, but I am not sure what amount. Since we are not granted meal breaks during our 12-hour shifts, we are supposedly allowed to deduct all or some of the costs of our meals. I'm having trouble finding information on this at the IRS website. This is the closest I could find....and it confused me.

Meals and entertainment. Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion.

You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit

The way I read this, we should be allowed to deduct 50% of the cost of our meals that we eat while at work and it is only that 50% that counts towards the 2% limit. Is that correct? So if I have receipts totalling $500, I can deduct $250 and it is that $250 that is applied toward my $2300 minimum? I'm wondering...since I often eat two meals during my shift, is there a maximum amount I can deduct? What about, say, a cup of coffee or bottle of soda that I buy to drink while at work? (I'm trying to figure out how many receipts I am going to need to keep track of)

...Uniform cleaning: (From the IRS website)
You can deduct the cost and upkeep of work clothes if the following requirements are met.
•You must wear them as a condition of your employment.
•The clothes are not suitable for everyday wear.
It specifically lists law enforcement and firefighters (why are paramedics/EMT's always not specified) so I think I will look into getting our uniforms professionally laundered.


...Cell phone service...Because of the nature of our jobs, a cell phone is almost a neccesity. Since our employers do not provide us with phones, nor reimburse us for our personal phones, I am wondering what percentage would be a "fair" deduction. From the IRS..."An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary. Based on this statement, I would assume that our wireless service should be 100% deductible since it is both "necessary" and "common and accepted". Does the fact that we also use our phones for personal use change the validity of the deduction?

I'm not looking for professional advice from anyone here. I'm just wondering if anyone else itemizes things like this and how hard it is to keep track of. We usually have a nice tax refund each year due to the fact that we tithe heavily to our church. Our church has always paid for the Christian Education tuition of our children, but the membership has grown too large and can no longer afforf to provide that benefit. So, starting in the 2014-2015 school year, most of our previously-deductible tithes to the church will have to be paid directly to the school to pay the tuition. Because of this, I have decided to be more diligent about our deductions. I want to make sure that I keep an accurate record of anything that can be deducted.

Along those lines...what do you think about opening a credit card (to be paid off in full each month) that is used specifically for work-related expenses? I think that would be the simplest way to keep track of them, right? It would be simple to print off an end-of-year statement to submit to the IRS and it would be nice and itemized. Any suggestions??

 

[Srbright]

...Work Boots (I get a $120 boot allowance every two years. I used mine in 2013 and my dogs used my boots as a chew toy so I will need new ones)

...Ballistic Vest for me (not required, but I have worn one since 1999 and I don't see a reason to stop now. The company will reimburse up to $200 but the vest is about $500. It is used exclusively for work.)

...Meals: I know we can claim something, but I am not sure what amount. Since we are not granted meal breaks during our 12-hour shifts, we are supposedly allowed to deduct all or some of the costs of our meals. I'm having trouble finding information on this at the IRS website. This is the closest I could find....and it confused me.

...Uniform cleaning

...Cell phone service...Because of the nature of our jobs, a cell phone is almost a neccesity. Since our employers do not provide us with phones, nor reimburse us for our personal phones, I am wondering what percentage would be a "fair" deduction.

Along those lines...what do you think about opening a credit card (to be paid off in full each month) that is used specifically for work-related expenses? I think that would be the simplest way to keep track of them, right? It would be simple to print off an end-of-year statement to submit to the IRS and it would be nice and itemized. Any suggestions??

...Work Boots: Yes, absolutely. You just have to remember to deduct the years that you get the allowance.

...Ballistic Vest for me: Absolutely, see above.

...Meals: No. You have to eat whether or not you are working. You can only claim the meal if you are entertaining in the course of your work or your work takes you out of your "normal" area (travel, conference, something that isn't usual)
http://www.hhcpa.com/blogs/income-tax-accountants-cpa/im-required-to-be-here-cant-i-deduct-the-meals

...Uniform cleaning: Yes. You cannot wear a uniform on a day off. As a controller I cannot claim my dry cleaning because I can wear those clothes anywhere. This is similar to the meals; you have to eat, you have to have clean clothes. If it is extraordinary you can claim it.

...Cell phone service...Because of the nature of our jobs, a cell phone is almost a neccesity: You said it yourself, it is "ALMOST" a necessity. If your employer does not require it then you cannot claim it. Just because it's "nice to have" doesn't mean the IRS lets you deduct it.

A credit card that is used specifically for work-related expenses?: Excellent idea. It lets you track the items and keeps you reminded to keep the receipts. The card won't do you any good if you don't have the receipt.

Stacy
Bona Fides: Masters in Accounting, Tax work. But don't take my word for it. For +$100k a year in salary, get a tax accountant. If you're making over $100k per year and doing your own tax with H&R block then you're doing yourself a disservice.

 

[sookie]

I have also heard that if you work greater than either 8 or 12 hours, and are not allowed regular meal breaks, you are allowed to deduct meals.

Check with a tax professional on that.

 

[Srbright]

I have also heard that if you work greater than either 8 or 12 hours, and are not allowed regular meal breaks, you are allowed to deduct meals.

Check with a tax professional on that.

You can't in Michigan. You have to eat whether you are at work or not. Less than 10 states have laws that require employers to give lunch or breaks.

Stacy

 

[mom2alix]

https://ttlc.intuit.com/questions/1330521-meal-deductions

This was a good answer on Turbo Tax regarding paramedics and when they can deduct meals expenses. It doesn't sound like your situation applies for that deduction.

 

[kristenrice]

Thanks everyone! This information is incredibly helpful. It looks like without meals or wireless, we won't come near the 2% so no need to save all those receipts.

I'm still a bit confused on the wireless situation. We have protocols and policies that require us to make phone calls from the scene. There is no stipulation for what to do if a phone is unavailable because it is assumed that all crews have a cell phone. Management also recently decided that text messages will be the new standard for communication. Again, it is assumed that everyone has a cell phone. So, they have not specifically required them because there are a few folks who would demand that the company pay for them.

 

[DisneySnark]

A great accountant will save you tons!

My accountant saved me 25k in taxes this year by restructuring my business. All very legal, ethical decisions. I'm still paying a lot in taxes, but the savings is appreciated!

Get an accountant! I promise it is worth it!

 

[3boymthr]

Just be aware that you also need to declare the boot and vest allowances your employer pays you as income, especially if you decide to start deducting the cost of the boots and vest as expenses. Your employer should be putting this on your W-2 but may not be aware that they have to.

Do you purchase any other equipment for your work? DH has uniforms which we could deduct and he also has tools - screwdrivers, flashlights, etc. which we can also deduct.

Also, as an EMT do you have continuing ed costs or a professional license? These would also be deductible.

 

[kristenrice]

Just be aware that you also need to declare the boot and vest allowances your employer pays you as income, especially if you decide to start deducting the cost of the boots and vest as expenses. Your employer should be putting this on your W-2 but may not be aware that they have to.

When I submit my receipt for reimbursement for my boots, it is an income item on my paycheck and taxed so I am all set.

Do you purchase any other equipment for your work? DH has uniforms which we could deduct and he also has tools - screwdrivers, flashlights, etc. which we can also deduct. Also, as an EMT do you have continuing ed costs or a professional license? These would also be deductible.

I renew my license every three years and it costs about $20. Our company has an internal education department which provides all of our continuing education for free so no expenses there.

 

[crisi]

The cell phone is like the clothes. You can probably deduct the cell phone if they only thing you use it for is work - you never call home to talk to the kids, you never call your mother, you never call your friends. But its required for work. The moment you start using it for anything other than work, then its a case of "you would have had it anyway." Its why home office deductions are tricky - have a home office, but use the computer to play World of Warcraft in the evenings and on weekends? Yeah, it isn't a home office for tax purposes.

Most of us use our cellphones for both work and our real lives - so our cells aren't deductable.

 

[Handbag Lady]

What if they buy a second cell phone that is used ONLY for work reasons? Then, that whole thing would be fully work related.

 

[sookie]

You can't in Michigan. You have to eat whether you are at work or not. Less than 10 states have laws that require employers to give lunch or breaks.

Stacy

Yes but I also think it depends on if you are completely unrelieved for those breaks. So if you are scheduled to work a 12 hour shift, have an unscheduled lunch period, and that lunch break can be broken by any matter (emergencies or calls out) I believe it becomes deductible.

I haven't had to use it but I remember my tax accountant grilling me about this.

 

[clh2]

What if they buy a second cell phone that is used ONLY for work reasons? Then, that whole thing would be fully work related.

True, HOWEVER, just because a potential business expense could be deductible, doesn't necessarily make it a good idea. I.e. If you pay 50/ month for a phone, x2 phones. That cost is 1200/ year. Even if you are above and beyond your 2%, and assuming you are in the 28% tax bracket! the only benefit you are getting is $336, meaning you are still paying $884 out of pocket.

Really, OP, as others have suggested, a good tax accountant would be a better place for advice.

 

[tvguy]

Yes but I also think it depends on if you are completely unrelieved for those breaks. So if you are scheduled to work a 12 hour shift, have an unscheduled lunch period, and that lunch break can be broken by any matter (emergencies or calls out) I believe it becomes deductible.

I haven't had to use it but I remember my tax accountant grilling me about this.

I think you are confusing penalties an employer may be required to pay you, with a tax deduction.
In California, you must get a meal break between 3 and 5 hours after the start of your shift. If you do not get your meal break in that window, the employer must pay you a penalty of 1 hour straight time pay. If you don't get the break at all, then they also owe you pay at time and a half for the length of the meal break you should have received. This is no tax deduction that I am aware of.

 

[tvguy]

What if they buy a second cell phone that is used ONLY for work reasons? Then, that whole thing would be fully work related.

This was an issue in the last Police Union negotiations, the city asked to buy officers cell phones after the IRS disallowed officers deducting even a portion of their personal cell phones as a business expense.
They are not a condition of employment, and since the city does already provide a 2 way radio, a portable 2 way radio, and a computer terminal in the patrol cars, PLUS our city still have landline call boxes for officers to use, the IRS said it was not deductible. Of course, you have to get audited to get caught.
http://www.news10.net/news/article/77756/2/Old-fashioned-police-call-boxes-still-on-the-job

 

[daughtersrus]

If you are part of a union, I believe that the union dues can be included.

 

[tvguy]

If you are part of a union, I believe that the union dues can be included.

Yes, union dues are deductible.

 

[Claire&TheBoys]

I do not have a tax professional. I do our income taxes every year with the H&R Block software and I find it to be simple and painless.

I am looking for some opinions regarding "work-related" expenses. DH is a police officer and I am a paramedic. Our gross combined income is approximately $115,000. In order for us to claim any work-related expenses as a deduction, they must total 2% of our gross income ($2300). This has always been a difficult thing to keep track of, but I am thinking about next year. Here are some of the items that I believe we can itemize as "work expenses" since none of them are reimbursed. I want to start saving receipts, etc for next year.

...Work Boots (I get a $120 boot allowance every two years. I used mine in 2013 and my dogs used my boots as a chew toy so I will need new ones)

...Ballistic Vest for me (not required, but I have worn one since 1999 and I don't see a reason to stop now. The company will reimburse up to $200 but the vest is about $500. It is used exclusively for work.)

...Meals: I know we can claim something, but I am not sure what amount. Since we are not granted meal breaks during our 12-hour shifts, we are supposedly allowed to deduct all or some of the costs of our meals. I'm having trouble finding information on this at the IRS website. This is the closest I could find....and it confused me.

Meals and entertainment. Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion.

You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit

The way I read this, we should be allowed to deduct 50% of the cost of our meals that we eat while at work and it is only that 50% that counts towards the 2% limit. Is that correct? So if I have receipts totalling $500, I can deduct $250 and it is that $250 that is applied toward my $2300 minimum? I'm wondering...since I often eat two meals during my shift, is there a maximum amount I can deduct? What about, say, a cup of coffee or bottle of soda that I buy to drink while at work? (I'm trying to figure out how many receipts I am going to need to keep track of)

...Uniform cleaning: (From the IRS website)
You can deduct the cost and upkeep of work clothes if the following requirements are met.
•You must wear them as a condition of your employment.
•The clothes are not suitable for everyday wear.
It specifically lists law enforcement and firefighters (why are paramedics/EMT's always not specified) so I think I will look into getting our uniforms professionally laundered.


...Cell phone service...Because of the nature of our jobs, a cell phone is almost a neccesity. Since our employers do not provide us with phones, nor reimburse us for our personal phones, I am wondering what percentage would be a "fair" deduction. From the IRS..."An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary. Based on this statement, I would assume that our wireless service should be 100% deductible since it is both "necessary" and "common and accepted". Does the fact that we also use our phones for personal use change the validity of the deduction?

I'm not looking for professional advice from anyone here. I'm just wondering if anyone else itemizes things like this and how hard it is to keep track of. We usually have a nice tax refund each year due to the fact that we tithe heavily to our church. Our church has always paid for the Christian Education tuition of our children, but the membership has grown too large and can no longer afforf to provide that benefit. So, starting in the 2014-2015 school year, most of our previously-deductible tithes to the church will have to be paid directly to the school to pay the tuition. Because of this, I have decided to be more diligent about our deductions. I want to make sure that I keep an accurate record of anything that can be deducted.

Along those lines...what do you think about opening a credit card (to be paid off in full each month) that is used specifically for work-related expenses? I think that would be the simplest way to keep track of them, right? It would be simple to print off an end-of-year statement to submit to the IRS and it would be nice and itemized. Any suggestions??

The statement I bolded above is not 100% correct. The 2% is of your ADJUSTED gross income, which is income after "above the line" deductions are made. Those deductions could be student loan interest, HSA deductions, alimony paid and other things. So, if you have any of those deductions, you might need less to claim.

My husband is an Army Reservist and since that is his 2nd job and is away from home, we are able to claim his mileage and food expenses while he is on Reserve duty (I use the standard govt M&IE rate for his duty station, then can deduct 50% of that). We claim the cost of his uniforms (he is an officer and has to pay for them) and when he had the old-style BDUs that had to be pressed, I did have them laundered and pressed at the dry-cleaner and did deduct that expense. For several years he had a personal Mi-Fi that he used to check his Army emails from his civilian job and he also used it when he was on Army duty also; we deducted 80% of the monthly cost of it. We are able to deduct several thousand dollars in expenses each year. (And PS - I work for a CPA, so I have my bosses' assurances that it is OK to deduct these items.)

 

[kcrew]

The meal information you quoted does not apply to you as you can see that it is under the "meals and entertainment" category as in taking a client out to eat for example.

As previously stated, meals are generally not going to be covered because "everyone has to eat." There is this exception which is probably what you are referring to:

Meal expenses are deductible under code Sec. 162(a) if the employee is required as a condition of employment to remain on the premises and purchases a meal from his employer. This would also apply, among others, to police, paramedics, and air traffic controllers.

Where do you and your husband eat? Are you allowed to go through drive-thrus, get take out, have delivery at work? Certainly you can bring a lunch...but nonetheless, if you are purchasing from a work cafeteria and CAN'T leave the premises it would then be deductible at the 50%.

I happen to be a tax professional, and I will tell you that police officers, corrections officers, fire fighters ect. are some of the most difficult clients to convince of actual tax regulations. Why? They tend to discuss tax deductions with coworkers, and when one person states that such and such is deductible and that they have been "doing it for years" coworkers take is as the gospel. Keep in mind that just because 1 coworker or even 10 deduct something and have never been audited doesn't mean it is correct. Very few people ever get audited-most returns are never even reviewed by a human. Odds are you can pull your employee expenses out of the thin air and you will never be audited. Plenty of people do this purposefully and are never caught. Others do it because they lack the correct knowledge and again are never audited and will never realize they are wrong...and will pass the erroneous information on to coworkers.

As for the cell phone...would you get rid of it if you didn't use it for work? Probably not. Is it costing you anything extra for the business calls? Probably not, but if it is get a prepaid phone that you will only use for those business calls and it will be deductible.

 

[tvguy]

They tend to discuss tax deductions with coworkers, and when one person states that such and such is deductible and that they have been "doing it for years" coworkers take is as the gospel. Keep in mind that just because 1 coworker or even 10 deduct something and have never been audited doesn't mean it is correct. Very few people ever get audited-most returns are never even reviewed by a human. Odds are you can pull your employee expenses out of the thin air and you will never be audited. Plenty of people do this purposefully and are never caught. Others do it because they lack the correct knowledge and again are never audited and will never realize they are wrong...and will pass the erroneous information on to coworkers.
.

Not unique to this line of work, but you really hit the key point. Everything is deductible until you get audited and it gets tossed out.
Our tax code is really based on the honor system. It is worth it for the IRS to audit you, to uncover incorrect deductions that might generate a few hundred dollars in tax?