Instructor Question
- Thread starter laventi
- Start date
honeybunch1
Cathlete
You bet! Keep track of all your expenses including your mileage. Have you also considered getting liability insurance? Where will you be teaching?
Just Do It!
Just Do It!
caricampbellcool
Active Member
Remember to put all this on your schedule C, unless you are in the situation of receiving a W-2 from your gym. Then the expenses go on Schedule A under "unreimbursed employee expenses".
Also, the rule by the IRS is that education is not deductible if it was required to enter into a new trade or business. That makes taking your expenses relating to your group exercise cert as a deduction questionable. For me, I did not take my AFAA cert expenses, but I am deducting my kickboxing cert. since I was already teaching when I got that. It's up to you. We in the CPA business call it "eat well or sleep well". I am conservative and prefer to sleep well!
Cari
Also, the rule by the IRS is that education is not deductible if it was required to enter into a new trade or business. That makes taking your expenses relating to your group exercise cert as a deduction questionable. For me, I did not take my AFAA cert expenses, but I am deducting my kickboxing cert. since I was already teaching when I got that. It's up to you. We in the CPA business call it "eat well or sleep well". I am conservative and prefer to sleep well!
Cari
Sheilaraecote
Cathlete
Don't forget those certification expenses and continuing education. I also do music, mic belt, microphone (invested in my own system due to the one at the gym where I teach continually breaking down) and videos for training purposes, choreography, etc.
At tax time it is Form 2106 (Employee Business Expenses) and ends up on Schedule A&B Itemized Deductions with expenses such as tax preparation software and union dues, etc. subject to the 2% over AGI (Adjusted Gross Income floor) if you are an employee. If you are a contractor, then you use Schedule C.
Hope this helps.
Sheila
At tax time it is Form 2106 (Employee Business Expenses) and ends up on Schedule A&B Itemized Deductions with expenses such as tax preparation software and union dues, etc. subject to the 2% over AGI (Adjusted Gross Income floor) if you are an employee. If you are a contractor, then you use Schedule C.
Hope this helps.
Sheila
This info has helped me, too. This is the first year that I have to file as independent contractor. I have a folder that I've saved all my receipts for music, my mic belt, conferences that I've attended to get CECs, etc. I was told that some clothing is deductible, like shoes for teaching. I've kept track of my mileage in my workout journal so I hope that's a good way to track it. Anything else I might need to know? My husband is getting anxious not knowing exactly how to do this type of filing. I just hope we don't have to pay alot.
Sharon
Sharon
caricampbellcool
Active Member
I also deduct my shoes, because I only wear them to teach in. I will deduct some clothing that I only wear to teach in. The IRS's thinking is that if you can use it outside of your group fitness job then it really shouldn't be deducted, but even if you get audited they will just assess tax on the deductions if they decide to disallow them.
And of course as previous posters stated, the music, vidoes, continuing education, etc. and anything else that relates to your fitness job should be deducted. You can also deduct your mileage. The rate for 2002 is 36.5 cents. So if you drove 1000 miles for work your deduction would be $365. Remember, you have to pay Self-employment tax in addition to regular income tax so deduct everything within the realms of the law!
The schedule C is simple- just put the amount from your 1099 on the "gross reciepts or sales" line, then enter your deductions below, or on page. 2 in the "other expenses" detail (part V). Enter your mileage info on page 2 of Schedule C (part IV), but times the mileage by .365 and enter that amount on page 1 under "Car and Truck Expenses" (part II, line 10).
Then carry your net income (or loss) to Page 1 of Form 1040.
If you use Turbotax it will probably guide you through this, although I've never used it.
I hope this wasn't too much info!
Cari
And of course as previous posters stated, the music, vidoes, continuing education, etc. and anything else that relates to your fitness job should be deducted. You can also deduct your mileage. The rate for 2002 is 36.5 cents. So if you drove 1000 miles for work your deduction would be $365. Remember, you have to pay Self-employment tax in addition to regular income tax so deduct everything within the realms of the law!
The schedule C is simple- just put the amount from your 1099 on the "gross reciepts or sales" line, then enter your deductions below, or on page. 2 in the "other expenses" detail (part V). Enter your mileage info on page 2 of Schedule C (part IV), but times the mileage by .365 and enter that amount on page 1 under "Car and Truck Expenses" (part II, line 10).
Then carry your net income (or loss) to Page 1 of Form 1040.
If you use Turbotax it will probably guide you through this, although I've never used it.
I hope this wasn't too much info!
Cari