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Biz Expenses When You Take Standard Deduction on Taxes?

In summary, if you take the standard deduction on your taxes, you can still claim business expenses. The amount you can deduct depends on whether you are an employee or self-employed. If you are an employee, you can claim expenses on Form 2106 or Form 2106-EZ and transfer them to Schedule A. If you are self-employed, you can claim expenses on Schedule C. You can deduct ordinary and necessary expenses for your business, such as office supplies and travel expenses, but not capital or personal expenses. There is a limit to the amount you can deduct, based on your adjusted gross income (AGI) and whether you are an employee or self-employed. It is important to keep receipts and records to support your expenses,
pattybrady
112
Not asking for specific tax advice, of course, but since this is my first year doing PC, figured one of you is in a similar situation and might know.

Right now with my FT job, I take the standard deduction rather than itemizing because it works out better for my tax situation.

However, now that I can deduct PC business expenses to offset PC income, can I still take the standard deduction on my taxes and just itemize the PC expenses on that schedule, or do I have to itemize everything now?

Thanks in advance if anyone knows.
 
The rule of thumb is that if the itemized deductions are greater than the standard deduction, then you should itemize. The IRS allows you to itemize a portion of your deductions, including PC business expenses, while still taking the standard deduction for the rest of your deductions. You will need to keep track of all of your eligible deductions and total them up to see which option works best for you.
 
It is best to consult with a tax professional for specific advice, as every individual's tax situation is unique. However, in general, you can still take the standard deduction for your FT job and itemize your PC expenses on a separate schedule. You do not have to itemize everything in order to deduct your PC expenses. Just make sure to keep thorough records of your PC expenses and consult with a tax professional for guidance on how to properly deduct them on your taxes.
 

1. Can I claim business expenses if I take the standard deduction on my taxes?

Yes, you can still claim business expenses even if you take the standard deduction on your taxes. However, the amount of your business expenses that you can deduct will depend on whether you are an employee or self-employed.

2. How do I claim business expenses if I take the standard deduction?

If you are an employee, you can claim your business expenses on Form 2106 or Form 2106-EZ and then transfer the total amount to Schedule A of your tax return. If you are self-employed, you can claim your business expenses on Schedule C of your tax return.

3. What types of business expenses can I deduct if I take the standard deduction?

You can deduct expenses that are ordinary and necessary for your business. This includes expenses such as office supplies, travel expenses, and advertising costs. However, certain expenses, such as capital expenses or personal expenses, are not deductible.

4. Is there a limit to the amount of business expenses I can deduct if I take the standard deduction?

Yes, there is a limit to the amount of business expenses you can deduct. If you are an employee, your total business expenses must exceed 2% of your adjusted gross income (AGI) in order to be deductible. If you are self-employed, you can deduct all of your business expenses, but they must be considered ordinary and necessary for your business.

5. Do I need to keep receipts for my business expenses if I take the standard deduction?

Yes, it is important to keep receipts and other records to support your business expenses, even if you take the standard deduction. The IRS may request documentation to verify your expenses, so it is important to keep accurate records to avoid any potential issues during an audit.

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