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while on assignment you can use most ANYTHING you spent money on as a deduction. You MUST be able to provide proof of purchase or you will be in trouble when audited.
Parking fees
Movies
concerts
chips and a coke at the gas station
You name it.
I have a terrible problem that maybe someone could make a few suggestions. I just recently finished an assignment in California. I have been home approx 2 weeks. I had my check stubs mailed to my home in Louisiana, so I didn't have them to check over (too trusting, I know). Well when I get home I opened all of my check stubs and looked over them....I was not cut any Federal income tax!!! I made approx 29,000 that had no fed taxes cut from it..Does anyone have any extra deductions, besides the obvious...food, mileage, uniforms, shoes that I may be able to use? Any help would be greatly appreciated...I'm very afraid that I will have to pay back a fortune and regret that whole travel assignment. I called the company and asked them to check...she told me that I was claiming 'exempt'..I know for a fact that is incorrect, because I have never filed that way, I have always filed single and zero, to make sure that enough is cut, so I know that they made a mistake, twice I called and was told they would call me back...with no return phone call, so I know that it was their mistake, but either way I'm pretty much screwed...
while on assignment you can use most ANYTHING you spent money on as a deduction. You MUST be able to provide proof of purchase or you will be in trouble when audited.
Parking fees
Movies
concerts
chips and a coke at the gas station
You name it.
I wouldn't panic over it. Show the paystubs to an accountant, figure out what you owe for 2005, and send in a payment.
For 2005, it's a bit late to start talking deductions, though there are quite a few to think about for 2006.
For the paychecks issued in 2006, see if you can adjust your witholdings so that by the end of 2006 it evens out.
None of this excuses the travel agency if they screwed-up, and I'd be sure to remember them to your colleagues.
Just a thought, set up a corporation, have the money get paid to the corporation in pre-tax dollars. Pay all your expenses (approved in advance by an accountant) from the corporate account, then pay yourself just enough to cover what's left.
The bulk of your bills, housing, phone, electric, cellular, uniforms, licensure, healthcare can be deducted from the corporate income lowering what you pay in taxes overall.
I've been doing for years with Nursefriendly, Inc. and it saves me a bundle legally in taxes.
Hope it works out for you.
Andrew Lopez, RN
http://www.nursefriendly.com
"Just a thought, set up a corporation, have the money get paid to the corporation in pre-tax dollars. Pay all your expenses (approved in advance by an accountant) from the corporate account, then pay yourself just enough to cover what's left."
I have set up my LLC. BUT all the companies want to treat me as an employee and still take out FICA and SSI out. It drives my acountant crazy to have to fix it.
Does anyone know of travel agencies that will pay us nder a 1099?
Josh Cook RN
Stat Nurses LLC.
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