Schedule C expenses

[Dusty2004]

?

Me neither, I think taxxcpa has the scoop on this one. But, I did have a client call this morning asking if it was true that there was no electronic filing this year. At all. Period.

Hard to understand where some people come up, or with twist things to come up, some of these things.

Dusty

[RitaB]

Or client's mechanic

Not even as a rumor or from a client.

Dusty

Me neither, I think taxxcpa has the scoop on this one. But, I did have a client call this morning asking if it was true that there was no electronic filing this year. At all. Period.

[taxxcpa]

Probably confused

He is probably confusing it with something he read and misunderstood. It could be that somewhere he read that typically his kind of business had expenses of about 30% and he interpreted it as an option in lieu of keeping up with actual amounts.

[Dusty2004]

Never heard of such a rule

Not even as a rumor or from a client.

Dusty

[manyhappyreturns]

I have a client whose husband has always done their own taxes for years. She's an independent contractor, and her husband has been taking her gross pay and deducting 30% of it as expenses every year. This year she said she had lots of new expenses and her pay has taken a severe nose dive, and she told me that she's quite sure she had a net loss, but she said she didn't keep track because she had always just claimed the 30%. When I asked why 30%, she said her hubby told her that a person can choose to deduct actual expenses or 30%. He somehow thinks that is a rule that he either read about or somebody told him. Has anybody here heard of such a thing? I'm having a difficult time imagining that the IRS would create such a rule, but of course, as we all know, not everything the IRS does makes sense. I'm 99% sure this is just an old wives' tale, but wanted to see if anybody else had heard such a thing.