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Been an IC for 17 years now. Never had a problem with deductions; however, I also have a husband

Posted By: MTIC on 2006-03-25
In Reply to: To all ICs claiming huge deductions...(sm) - Very Upset

and we file jointly with a schedule C. We do receive a large return, but that is because he has so much tax money taken out, because over overtime, etc. I guess I am just the lucky one with that.

My deductions come out to about 10K a year working as an IC.

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I met my husband online too - 6 years ago!
He was in England and I was here. I just got my computer (I had never been on the Internet before, believe it or not!)after my roommate had convinced me I should get one and try out surfing online. I met him in a chat room - we hit it off and spent many, many hours on the phone. He moved over a few months later, we were married 2 months after he had moved over, and the rest is history. We'll be celebrating our 6th wedding anniversary in March. Sometimes you meet weirdos, but occasionally you may get a pleasant surprise :)
I met my husband of 18 years at the beach.
I was 17 and a Junior in High School when I met the love of my life at the beach. It was wonderful - no alcohol involved and we didn't meet in a bar. We just celebrated our 18th anniversary November 14th, and have two children, a son 16 and a daughter 14.

My husband and I have been in the MT business for 10 years now (sm)
and he calls himself a medical language specialist - and actually does QA. He does not refer to himself as an MT as he does not type - unless it is a dire emergency!! I do think it is one of those businesses where the men seem to be higher up the chain of command and some don't really know what an MT does - they don't understand basic transcription skills and how anything but fingers on the keyboard takes away from their production and money earned. I often laughingly ask my DH how a man could manage a Victoria Secret if he has never personally worn a bra and knows nothing about fit/size/comfort??
As someone who lost their husband almost 2 years ago, I can tell you that no amount of money could

ever replace my best friend and husband.  Yes, I have tried the dating thing, but to tell the truth here, it's not the same and I don't think anyone could ever replace the father my children lost at such an early age. 


By the way. he had just turned 34 when he died, so I suppose you might want to give your hubby a big hug tonight for thinking of your future without him, especially when we truly do not see ourselves leaving this world so soon. 


Hugs to you and yours!!!

17 years, my husband's got yours beat, he's STILL crying over the Notebook!

Years ago weight issue supposedly for husband
I was trying to get some life insurance- told the man husband weighed 250 or 280, forget exactly what- was told he was overweight. The insurance man came to my house and then saw, my husband was into wrestling then and the guy said, you're not overweight, you're just big- hubby 6'4 and carried the weight extremely well (may not be the same with you and me though- I am NOT fat, just not tall enough!
Guess that means my husband is doomed....quit 15+ years ago (46 now)--GF had lung cancer
so either cancer will get him (his dad had bladder cancer, doing fine now but it did recur and lost his kidney about 10 months ago)...figure either cancer or cirrhosis will get him (drinks 8-12 "light" beers a day...for over 20+ years). So can you say semi-young widow?? (39). Naw....he will probably live forever, which is good.....lots of longevity in his family despite the cancer. Good.
DH is dear husband or any number of colorful adjectives preceding husband. (no message)
The IRS has guidelines published for people who file quarterly.  I've been doing this at home for 9 years now.  Over the years the govt has sent me vouchers which I've ignored.  This year, however I decided to pay quarterly to stay out of trouble.  I know there are exceptions for filing quarterly if you have children but since I don't I didn't pay much attention when reading the info.  However, I have heard of ICs who had their husbands take more out of their checks but the IRS penalized them anyways.  Hope this info helps. 

Well 2600 out of 15 K is about 15% to 20% and it depends on the sq foot that you have in your office.  I use 20% and deduct 20%.  You cannot deduct ALL of it as it is only the percentage of the house that you use.  If you are a business, an IC and it is required that you need that occupational license it is deductible.  I deduct my business license which is a percentage of my business -- would trade the $200.  If we want to operate as a business and want the deductions that you have to be licensed as such and pay the necesssary fees.  Can't have it both ways. 

I had about 12K in deductions.
I deduct and depreciate my house as I know I will live in it well after I retire and so won't  have to worry about the depreciation move or when I die and my estate can well pay for it if it.  But I deduct advertising, phone, health insurance, mileage, computer, supplies, depreciation of house, partial utilities, my internet, cell phone, etc. and it equals out to at least  15K a year.  My mileage helps but if I were working outside in a hospital I would have that expense and no deduction so I don't mind.  I also put aside 20% in my IRA which is a deduction.   Most of these deductions I would have if I were not an MTSO-IC as I would still use internet, gas, house, utilities, etc. and would have more of a taxable income but someone is just holding my taxes for me and sending them in.  But you have to think ahead to prepare.  I go on vacation to places where there are seminars that I want to attend, etc. Again if you weren't an IC you would still have those expenses and they would not be deductible.  It is just a shock because no one withheld for you during the year.  You almost think and feel that your employer is actually paying those taxes for you and except for the 7.5 of SS they are just managing your money.  So begin to manage yours now.   If you have kids and give them allowances, you can say you are paying them for filing and be able to deduct up to 500 without doing a 1099.  There are legitimate deductions out there but you gotta search for them.  If you have your kids give out flyers, etc, pay them and deduct it.  You give them money anyway.  But I would not give up my house deduction/depreciation for anything as I know I will be here long after I retire.   That is my long 2 cents worth.  Patti
I need help with QA deductions..SM

It has been so long I don't remember the exact deductions and how it works.  Could you please tell the very basic process for deductions and how it works.  Specifically, how much is deducted for a word left out, the wrong medication dosage, no comma where there should be one, and when they type a word like has but it was supposed to be his.

I'd really appreciate it.  Maybe someone knows a site that has this info.  I couldn't find anything myself. 



Mileage for any travel pertaining to business, advertising, mailings, internet, phone, office, -- first couple of years I went to a CPA and then did on my own following his prior returns with Turbo Tax.  They take you through it step by step.  Anything you contribute to your SEP retirement, insurance, computer, desk.  Get a good book or talk with a CPA.    Have a separate check book for all payments to work related expenses.  Even a couple thousand miles per year is a savings. 

Hello everyone. I know this has probably been discussed a million times and that there's probably information in the archives (which I plan to dig into), but I was wondering if anyone could, off the top of their head, guide me to a site or something that could specifically tell me what deductions I am able to take as an IC doing MT work for a national company? Thanking you in advance. Reb
I totally understand but if your husband is like my husband... sm

When it comes to something like that, that I usually take care of but for whatever reason I can't, I will tell my husband exactly what to do, but when he comes back - to use your case as a "for instance" - I will ask him, "Did the doctor look at his foot?" 

Him: "No."

Me: "Did you ask the doctor to look at his foot?"

Him: "No."

Me:  "I told you to have the doctor look at his foot!"

Him: (shrug)

etc., etc., etc.

Your husband may not be like that - I sure hope he isn't. And yes, they should have checked his vitals and checked his foot without being asked. But sometimes you have to be assertive with people. And while my husband attained the rank of major in the Air Force and had no trouble ordering people around, there are times when he should be assertive but isn't. And he is not intimidated by doctors - he started his AF career as an x-ray tech (that's how we met). I dunno....(Rad MT wanders off, mumbling....)

Don't forget the tax deductions
Pleae keep all your receipts for hearing-aids/batteries, etc. and check with your tax preparer at year's end or before. I would think this would be deductible but worth asking about.
I only took the standard deductions
and it still happened to me. What I couldn't understand was that I was supposed to be in a less likely audit bracket because that year I was an employee, an IC and an SE. (they were trying to see if I met employee status on my SE account).
TAX question..deductions??sm
I am starting or trying to start my own business at home
but in order to do that I had to buy my own pc and use
it to take an online course at home in my spare time.
I work parttime for a national MT co. I want to deduct
the cost of the pc and the course from last year's income
which I earned as an SE (several W2s). Both the course
and the pc were bought in Dec. 05 using a small-business
credit card. I don't expect to finish the course for a few
months and only then will be able to "market" my new skill.
My question I guess is..when you purchase something by credit,
is it "totally deductible" in the year of purchase or do you
only deduct the payments in the year they occur? Thanks.
need some tips for tax deductions
I would really appreciate any tips I an get on tax deductions for at home employee.
Just keep deductions in mind.
I live in Alabama and out in the country. I count the miles I drive to the bank and to the post office, post office box dues, cell phone, extra phone line, internet, etc. As an employee I had to pay all these anyway, I just could not deduct them from my taxes.
I pay taxes now and take ALL deductions
Employee/IRS deductions
I have been claiming my home office for years as a deduction, which includes portion of my oil heat, telephone bills, DSL bill, computer, paper, pens, notebooks, etc, books, software, etc.   I have been an employee and an independent contractor, and my accountant has always told me I could take these deductions, so I have with absolutely no problem.  The rules for a home office is that the room you use needs to be for business, so I use a small bedroom just for my office, i.e. it cannot be a room you use for a bedroom and a home office.   Hope this helps. 
What are some examples of deductions you use?
Disagree, as an IC you can take those deductions
I'm an employee now, and though I still do write off home office and percentage of my bills it's nowhere near the amount I used to be able to write off as an IC. All those extras have to add up pretty high to get above your standard deduction to write them off as an employee.
Since when as an employee can you get deductions?
Income after deductions.
Income after expenses is what you are given credit for making. If you grossed $40,000 and had $10,000 worth of expenses, you made $30,000. This is your taxable income and what is credited as your social security income.
Get a good tax guy. His fee is a write-off. He will tell you what you need to do & deductions you
write offs/deductions for IC's??

Just wanting some ideas on what everyone uses as deductions.  Im going to get hit hard this year and just seeing what everyone else does.


Are there any deductions for taxes on your paycheck?
To all ICs claiming huge deductions...(sm)

I just met with my accountant yesterday.  I am so sick I cannot think straight.  I asked alot of people before moving ahead with an IC position and leaving employee status.  EVERYONE stated that the deductions you can write off are more than worth paying the extra SS taxes that you no longer have an employer to pay.  I even saw several people specifically state they lowered their taxable income by $10,000 or more so the IC status was well worth the headache of paying the extra taxes. 

Well, I would sure love to know how in the world you ladies come up with these deductions.  The accountant said my total deductions for my home office came to about $2400.  But then my SS taxes I owed ate up that plus about another $1500.  Are those of you reaping in huge deductions working strictly via the internet?  I have no gas, mileage, vehicle wear/tear deductions because I'm strictly internet based.  But even with considering those deductions, if I had them, I still cannot see where in the world you all are coming out so much better.  Someone please offer suggestions/comments....have I just completely screwed myself over here or do I need a new accountant??

My IC home office deductions came to only sm
$1100 because I own my house outright and, like you, have no real expenses because I work at home off the Internet. My health insurance premiums are low because it's lousy insurance.

People with high mortgages will have a higher deduction based on that. They may travel each day to get their work, etc. Every person's situation is different.

I think you did okay!

BTW, if anyone uses H&R Block, I strongly urge you to get the Peace of Mind benefit for $27. Mine came in handy for 2004 when the preparer made a big, big mistake caught by the IRS (I'm going to end up getting a refund of what the preparer said I owed in 2004!!!) This may be my last year with the blockheads, though. I should say I've gotten excellent service in the last 25 years, except for that one preparer last year and Block messing up on its own tax preparation.

Wasn't that 20K TAXABLE after all deductions? sm
I wouldn't mind making more than that and only having to pay taxes on 20K.
You worked, they paid. You took deductions.
Does anyone remember name of book for deductions
if you work at home, saw posted a few weeks ago, wrote down and have misplaced. Thanks.
Try googling "book for tax deductions" or
depends on income and esp deductions.
last year was my first as an IC, and i saved back money for taxes -- needed none of it.
Hidden business tax deductions?

Have any of you come up with some not well know deductions we can take on our taxes?  As you all know, in transcription our overhead is very low and we get SOCKED on the self-employment tax.

I already do the percentage of house on taxes, utilities, phone, gabage, etc.  Full on cell phone, meager supplies, meager mileage, internet.  Might have gotten yard care deducted last year, I forget. 

Let me know if any of you have other areas of deductions!!

But you get tons of deductions and write-offs.
My independance and deductions, making my tax load LESS,
A good tax guy can help with taxes and give ideas on deductions. His fee is a
I guess they are focusing on people who take huge deductions which I really dont so maybe that is
why they dont audit me because basically there is nothing to audit since my deductions are about $600 a year which are payroll deducted for equipment. I watch with my deductions that everything can be well documented but I really only have health insurance now which before you couldnt take so that is it for me and that is easy to prove.
A good tax guy is worth his weight. He will help you find deductions and if any probs with IRS,
Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
58, AHP/self-taught, trained at hospital 5 years, now with 2 of my own accounts for 10 years, employ
Also worn out 2 keyboards in 4 years. I will never retire. DH will come home some day from work and I'll be slumped over my keyboard. I put in 14 hours a day 7 days a week.
Pack years = packs smoked per day x years of smoking - sm
25 pack-years = 25 years of 1 pack a day, or 12-1/2 years of 2 packs a day.

I don't think pack-years applies to someone who smokes only cigars. But I don't know for sure.
I worked for Cbay for 3 years. I was also part of their lay off back many years ago. sm
Even though I got stuck in a lay off era, I still love the company. They paid well then. The people were nice (exception of 1 person) and if I had the opportunity I would go back again. Fortunately (or unfortunately - depending on how u look at it), I have a great paying job right now, so I am not looking for a change. I do know that at one time, they asked management to accept late paychecks, but never sure of the reason why. My check was never late.
I know it used to be 5-10 years back, but the laws changed within the last 2 years. They can only g
6 years legal then switched to medical 17+ years ago. sm

I don't mind doing legal and will do it now from time to time, but be prepared to be totally bored out of your mind.

At least that's the way I feel.  I love to transcribe, learned legal in college, went on to get my paralegal degree, etc., etc., but I did temp work when the kids were younger, which was about 90% medical and I would never go back to legal except for once in a while.




Only 3 years away from reaching total years for retirement
but if I had to do this and raise a family, would feel exactly like you do. The pay is terrible compared to what I used to make. I work 32 hours a week, hope to be able to continue even after full retirement age. I have worked on VR now and unless places get to where they really do not care about how their reports look, think they will need MTs. I very seldom do a report and it is 100%, just cannot remember 1 like that and most take a lot more editing. Working now because want to, not have to anymore, thank goodness!!
I dumped my ex 20 years ago, but got lucky 13 years ago

It would take me all night and pages and pages to describe what a bad person my ex-husband was.  After six years of putting up with his OCD, verbal abuse and alcohol, I left him the house, took the kids (5 and 1) and didn't look back. That was 20 years ago.

I wasn't looking to get married again, but I did.  After 13 years I only complain when hubby doesn't see things my way. :) 

My older kids, who were 5 and 1 when I left, are married and have kids of their own now.  My husband gets the Father's Day cards.  Their "real" father sits alone in the perfect little house I left behind and let him have and he drinks himself into oblivion every night because nobody is "perfect" enough, including his kids and his grandkids that he never sees. 

Sad, but true.  So glad I smartened up and got  out of there when I did.