![]() ![]() " 10-SR Tax and Earned Income Credit Tables," Pages 15–16. " An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018." ![]() If you sell goods related to your hobby to customers, you can deduct the cost of those goods when calculating hobby-related income. These expenses, up to the amount of income you earned each year, are no longer deductible even though you do have to report (and pay taxes on) any income you earn from your hobby. Fees you pay to prepare your business return are fully deductible as a business expense. If you hire someone to prepare both your personal and business taxes, ask for a separate bill for each. Also gone are deductions for electronic filing fees and fees you pay to fight the IRS, including attorney fees, accounting fees, or fees you pay to contest a ruling or claim a refund. These include the cost of tax preparation software, hiring a tax professional, or buying tax publications. ![]() The deduction is limited to the amount of taxable investment income you earn for the year. Although the items above are no longer deductible, if you borrow money to buy an investment, interest on that loan (called investment interest) is deductible if you itemize. These are fees for investment advice or management, tax or legal advice, trustee fees (i.e., to manage IRAs or other investments), or rental fees for a safe deposit box. You could also ask for a pay raise, but that would be taxable. Your best recourse is to ask your employer to reimburse you for these expenses. These are work-related expenses you paid out of your own pocket and include travel, transportation, meals, union and professional dues, business liability insurance, depreciation on office equipment, work-related education, home office expenses, costs of looking for a new job, legal fees, work clothes, and uniforms. ![]()
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