Episode 18 - 5 common tax errors and 3 opportunities to save

business/career financial Jan 11, 2016

In this episode, Jeff and Kristin discuss taxes (ewww, right?). Kristin reveals five common tax errors that could cost you big time and three opportunities that could save you a bundle.

3 critical elements in a winning gamification strategy

The last estimated tax payment for 2015 is due January 15, 2016.

Five Common Errors

  1. Poor record keeping
  2. Mixing business and personal expenses
  3. Employees vs. subcontractors
  4. Not sending 1099s
  5. Failure to make estimated tax payments

Three Huge Opportunities

  1. Retirement plans - SEP, SIMPLE or 401(k)
  2. Putting spouse or kids on payroll
  3. Home office deduction

Tip of the Week Set a reoccurring item in your calendar or a task manager like Nozbe for estimated tax payments.

App of the Week

Google Calendar and Nozbe

Other Mentions




MileIQ is currently offering 30% off their normal annual rate with promo code TAX30PRO Cloud Based Accounting Systems:

Here are the IRS regulations from Publication 17 regarding work clothes:

Work Clothes and Uniforms

You can deduct the cost and upkeep of work clothes if the following two requirements are met.

  • You must wear them as a condition of your employment.
  • The clothes aren't suitable for everyday wear.

It isn't enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you don't, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing. Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.). Musicians and entertainers can deduct the cost of theatrical clothing and accessories that aren't suitable for everyday wear. However, work clothing consisting of a white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, isn't distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman aren't deductible.

Protective clothing.   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.  Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers.

Military uniforms.   You generally can't deduct the cost of your uniforms if you are on full-time active duty in the armed forces. However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses.  If local military rules don't allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive.  You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school.


IRS Form 8919 - used by subcontractors who believe they should have been an employee. If this form is filed by one of your subcontractors, you will be audited. IRS Form W-9 - This is the form you give to subcontractors so they can provide the information needed to prepare 1099s

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