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Does anyone keep track of deductions for their taxes?

Gas to the dogpark, etc.? I've submitted itemized deductions before, but never as a private contractor.

5 Answers

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Definitely start keeping receipts for all your work related expenses, throw them all in a file and take them to your tax preparer.

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I track my expenses for things like carpet cleaner, toys, the crate i just purchased, etc... I don't track my mileage because I rarely have to drive anywhere, but you can track your mileage. For mileage tracking, I would check with the IRS codes, GSA rules, and your state and local laws about that.

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Thanks Brett!

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I've been an independent contractor for the past 10 years for various types of work. I'm not a tax expert, so take what I say with a grain of salt. As an independent contractor, you can deduct expenses connected with your Rover business, such as business cards, items bought to use in your business such as poop bags, mileage to and from client homes if you are a traveling sitter. I don't know about trips to the dogpark. It has to be proven that it's only for your business (i.e. you can't buy dog food for both your dog and the client dog and deduct the entire amount) and you should have receipts for everything. Read the IRS publication on Schedule C for details, and contact a CPA or tax professional.

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Thanks Cari!

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I noticed someone said they kept expensives for the dog crates. Are those tax-worthy deductibles before they are for your business?

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I literally hold back 34% and put it in an envelope until tax day. Seems to be the best way to avoid getting broadsided by the IRS.