NetComm888 writes:

- quote -

You're an employee, not an independent contractor. Shamming
otherwise is inviting trouble.

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netcomm888[at]yahoo.com (NetComm888) wrote:

- quote -

Given that these things are all required by your employer,
for the convenience of your employer (not just your own
convenience in working at home rather than commuting), or
required to maitain the skills you need for this job,
they're all legitimate employee business expenses. Form
2106, transfer the total to Schedule A.

Unfortunately, employee business expenses are "above the
line" miscellaneous deductions that get hit with a 2%-of-AGI
haircut. Say you make $50,000, the first $1,000 of "above
the line" deductions give you no tax benefit.

- quote -

Whether this would be allowed at all is between you and your
employer. Lots of employers will not establish an
independent contractor arrangement with someone who is in
reality an employee. If you are providing your own equipment
and facilities, setting your own working hours, and the
like, you might be able to claim that you should be treated
as an independent contractor.

Independent contractors need things like general liability
insurance that they wouldn't need as employees, and they pay
self-employment tax, which ends up being just as big a bite
as Social Security and Medicate. Also, they don't get
company benefits and aren't protected by labor laws,
unemployment insurance, or worker's comp. Think about all
these things before approaching your company with an
independent contractor arrangement.

--
Chris Green

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"NetComm888" <netcomm888[at]yahoo.com> wrote:

- quote -

You can claim all those expenses you mentioned plus others.
You need to get a Form 2106, since you are an employee of
that company, and claim those office in home expenses that
are allowed on that form since you will be itemizing your
deductions anyway. There is no need to set up a company for
your activities. Get your Form W-2 from the company, use
Schedule A for itemized deductions and be sure to include
those calculated on Form 2106.

Wayne Brasch, CPA, M. S. Taxation

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I need your advice on this issue:
Currently I'm working remotely for a company as a part-time
employee. So on my paycheck, I was deducted for fedral,
state, social security and medicare tax. I work exclusively
remote, means I only work for a couple of hours in the
evening. I work from my own home and pay the internet fee to
connect to the coporate server. I used to use standard
deduction for tax return, but this year, I will file
itemized deduction since I bought a house early this year.
In order to save some tax, here are my questions:

1. Is there anyway I could claim the internet monthly fee,
cell phone bill and part of my mortgage for itemized
deduction. Occasionally, I also need do some training, can I
also claim part of the training related fee in the tax?

2. Is it better for me to simply start my own company, in
that all the expense above could be claimed as the company
expense. If so, do I need to contact the HR department to
change the paycheck to my company? How much paperwork would
be involved? Thanks in advance.

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