Saturday, March 10, 2012

TAX MAN

Since the few thoughts I have to add to Zero's post from yesterday all hit too close to home: taxes!*

Mostly a friendly reminder - if you itemize your deductions, don't forget to include "Research expenses of a college professor." <- that's the IRS so we're official.

Don't include: Commute, lunch with co-workers, or expenses to improve professional reputation.

Include any unreimbursed ordinary or necessary expenses: "An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary."

I figure that at least includes conference expenses and probably professional memberships.

-- Second Suitor

* Obviously I'm not a tax professional and all that, if you have a real question ask someone who knows!

7 comments:

Anonymous said...

"An expense does not have to be required to be considered necessary."

*head explodes*

Anonymous said...

"List of Nondeductible Expenses


•Illegal bribes and kickbacks"

Well, damn.

CTS said...

@March 10, 2012 3:06 PM:

What? I found that reassuring. :-)

Anonymous said...

Many academics should also use Schedule C to report honoraria (from textbook reviews, speaking gigs), book royalties, and any other revenue separate from your employment as a professor. The deductibility rules are somewhat more generous than Schedule A-Form 2106. Your business is something like "higher education consulting." You can get in very serious trouble if that revenue is not reported somewhere on your tax return and it doesn't fit under A-2106.

Use A-2106 for all the expenses related to your salaried work as a professor (union dues, travel to professional meetings, professional memberships, etc.) You also have to report the reimbursements you get (most likely, travel), but the rules for deductions on the tax form often exceed what you've been reimbursed, so you come out ahead.

Anonymous said...

I am pretty sure you cannot count as an expense professional membership. That looked like one of the things in the list of what you can't deduct in the file you linked to.

Anonymous said...

"Dues to Chambers of Commerce and Professional Societies

You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. "

http://www.irs.gov/publications/p17/ch28.html

Anonymous said...

"Dues to professional societies" Yes, you can deduct them. http://www.irs.gov/publications/p529/ar02.html#en_US_publink100026912