Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

independent contractor expense deductions

My son has been working...

My son has been working this year as an independent contractor. His permanent home is in one state but he is working in other states. He worked for one company in another state for 3 months and now is starting with another company in a different part of that state for a few months. What are the specific expenses he can deduct as far as hotel, meals and mileage? Can he deduct mileage from the hotel to the job every day or just what he drives on the job during the day? He usually has to stay up to 25 miles from the job as they are usually in remote locations. The rules we have read are very confusing and not very helpful in his case.


 


4:59AM -I am going to bed now will check for answer later in AM.

Show More
Show Less
Ask Your Own Tax Question
Answered in 2 hours by:
7/3/2012
Dave CPA
Dave CPA, Accountant
Category: Tax
Satisfied Customers: 840
Experience: Vast knowledge within the accounting/tax industry
Verified
Hello,

Welcome to Just Answer,

The deductions depend on if the out of state assignments are temporary in regards XXXXX XXXXX he produces all of his income or if his sole job is moving around to produce income.

Temporary assignment vs. indefinite assignment. If your assignment or job away from your main place of work is temporary, your tax home does not change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.

If he doesn't do any work where is primary residence is then that is not his Tax Home. Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.

There is a good chart on page 14 of the link below that outlines what travel between jobs is allowed an what is not. You should reference "Temporary work location"


http://www.irs.gov/pub/irs-pdf/p463.pdf

So to summarize, if he works temporarily away bust mostly in his normal location the hotel, meals and mileage can be deductible, but if his main job is on temporary assignment than he can't make the deduction as his tax home is where he works and therefore you can't deduct such expenses where you live and work.

This is all outlined in the link above.

Please let me know if you have any follow up question before you rate my answer. A positive rating is what I strive for.
Ask Your Own Tax Question
Customer reply replied 5 years ago

I don't believe he can deduct any of his lodging, meals or his travel from SC to Georgia and back when he comes home. However, since he is self-employed shouldn't he be able to deduct the mileage for his workdays? He does fiberoptic cable mapping. The job in each location will be less than 6 months. He leaves his extended-stay hotel each day and drives to different sites where he has to do mapping using a GPS and other such tools. Then back to the hotel for the night.


 


He has never worked in the city where he lives. I guess the best thing for him to do is to get a CPA next spring to do his taxes for this year. In the meantime, he is trying to figure out his estimated taxes due this year to make a payment.


 


Does his status sound like he would be considered a temporary self-employed person, and as such could he just take the work-related mileage off his taxes?

Hello,

 

Let me answer your questions individually and let me know if you need further clarification.

 

However, since he is self-employed shouldn't he be able to deduct the mileage for his workdays? The job in each location will be less than 6 months. He leaves his extended-stay hotel each day and drives to different sites where he has to do mapping using a GPS and other such tools.

 

Yes this would be deductible as laid out in the scenario. Getting from one workplace to another during the course of your business is deductible. This is referenced on page 14 of the link I sent.

 

He has never worked in the city where he lives. I guess the best thing for him to do is to get a CPA next spring to do his taxes for this year. In the meantime, he is trying to figure out his estimated taxes due this year to make a payment.

 

A CPA can help but to make the estimated taxes for this year he can use last years tax liability as a proxy if his income and filing status is about the same. So if he paid $5,000 in taxes last year he should make estimated payments of $1,250 every quarter. That would be a good start.

 

Does his status sound like he would be considered a temporary self-employed person, and as such could he just take the work-related mileage off his taxes?

 

If he is truly a self-employed person whom files a schedule C for his business then he include the work-related mileage on his taxes as outlined above.

 

Below is a link that can help with determining the estimated taxes that he should make in 2012. It has good info and includes the voucher forms that he would send in along with his payment.

 

I think with this link and the info on travel in the first publication I sent he should be in good shape in regards XXXXX XXXXX the info he would need.

 

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

 

Please let me know if you need further clarification.

Dave CPA
Dave CPA, Accountant
Category: Tax
Satisfied Customers: 840
Experience: Vast knowledge within the accounting/tax industry
Verified
Dave CPA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Dave CPA Your Own Question
Dave CPA
Dave CPA
Dave CPA, Accountant
Category: Tax
Satisfied Customers: 840
840 Satisfied Customers
Experience: Vast knowledge within the accounting/tax industry

Dave CPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
20% tax deduction for pass through entities is limited for
Hi there. 20% tax deduction for pass through entities is limited for service providers like doctors. My question is: An S-Corporation provide medical billing services like sending claim, collecting mo… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Who can deduct 529 contributions. Can grandparents deduct
Who can deduct 529 contributions JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: Can grandparents deduct 529 contributions JA: Is there anything else … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Will there be any changes in the payroll deductions for
Will there be any changes in the payroll deductions for 2018? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question about the business tax deduction for using
I have a question about the business tax deduction for using a car. It's a two-part question. The first is, as an independent contractor emergency physician, I drive 86-120 miles away from home, stay … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are non insurance covered medical expenses deductible? Are
are non insurance covered medical expenses deductible? … read more
abci168
abci168
Principal
27 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Has the Charitable deduction been affected by the new tax
Has the Charitable deduction been affected by the new tax law??? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is the deduction for medical expenses on Schedule A repealed
Is the deduction for medical expenses on Schedule A repealed under the new tax law & can health insurance premiums for a Schedule C proprietor still be deducted on page 1 of Form 1040?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
This is an income tax question. I am thinking of Deducting
This is an income tax question. I am thinking of Deducting next years giving to church this year with pending changes to tax law. As I recall, higher income levels reduce schedule allowable deductions… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
In an independent contractor in Hawaii. There is a 4% excise
In an independent contractor in Hawaii. There is a 4% excise tax for independent contractors. I'm a tennis pro working for a resort. The resort pays me 70% of my lesson. For instance, a lesson is $100… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Dose mean can not deduct state income taxes only or dose it
dose mean can not deduct state income taxes only or dose it includes property taxes too … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Form 1120, cash basis. If Taxes paid to IRS are deductible,
Form 1120, cash basis. If Taxes paid to IRS are deductible, are refunds for overpayment the equivalent of income?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
I'm looking for help with tax deductions. I will be
I will be receiving a large lump sum this year. I want to know if there is a limit to how much state tax I can deduct for federal filing? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
You may recall that tax deductions are only deductible by
You may recall that tax deductions are only deductible by the legislative grace of Congress. After this lesson, you might have realized that Congress was pretty generous with the types of business exp… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
Can house maintenance and property taxes be deducted on form
Hello. Can house maintenance and property taxes be deducted on form 1041 for a house owned by decedent prior to the Executors selling it? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I would like clarification on the IRS tax deductions and a
I would like clarification on the IRS tax deductions and a rental property I purchased recently. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x