The deadline for filing your 2015 U.S. income tax return is approaching quickly. Now is a good time to review your business expenses and make sure you are taking advantage of every legitimate deduction Uncle Sam allows.
If you teach at a school or play for an orchestra, you will receive a W-2 form to report your wages. If you freelance, or earn income from playing in addition to your W-2 wages, you are probably going to file a Schedule C. An important part of the Schedule C form is the business expenses you can claim to reduce your tax burden. Here is a list of the top five categories of expenses to examine before you file your return.
1 car expenses
Most harpists need a car to move their harp, and many car-related expenses are tax deductible, depending on how much the car is used for business. Maria Novotny, a partner in the accounting firm McDirmit Davis in Orlando, Fla., explains, “You may deduct actual expenses or take the standard mileage deduction, but not both.”