Believe it or not, you can deduct all of your travel, lodging, and half of your food. Basically, it’s as if you’re on an extended business trip for up to a year in length. Compensation CountsHow you deduct your professional expenses depends on how you were compensated during the year. If taxes were withheld from your pay, then you are considered an employee, and will claim these expenses as a miscellaneous itemized deduction, summarizes Schwartz. Independent contractors can deduct their professional expenses directly against their private practice or moonlighting income on a Schedule C.
D. Schwartz, CPA is the editor and a major contributor to www.MDTAXES.com, a website that provides income tax and financial planning information geared towards healthcare professionals. Schwartz has provided financial planning advice in interviews with various media, including the Washington Post and Wall Street Journal.
Responses to 'Ordinary + Necessary = Deductible'