Tax Question:For a 1099 contractor in IL, are sick days a business/miscellaneous expense?
Tax Question:For a 1099 contractor in IL, are sick days a business/miscellaneous expense?
I had a few sick days in 2010 (appx 10) that prohibited me from going to work. As a 1099 contractor, I only get paid per hour when I work. My question is can I claim sick days as a business or any other type of loss.
Second, can I claim public holidays as a business loss?
Answers:
Jack: 1st idk 2nd no but screw it the odds of them aduiting you are low
2011-02-13 21:08:14
2011-02-13 21:08:14
Judy: NO, neither sick days nor holidays are a deductible expense.
2011-02-13 21:10:32
2011-02-13 21:10:32
the tax lady: No.
You already have the "tax benefit" because the IRS only taxes you for the income you did make, not the income you didn't.
2011-02-13 21:37:45
2011-02-13 21:37:45
chatsplas: NOPE
Assuming you're a cash basis taxpayer
No income, no loss, nothing reportable
The bright side is that there is no tax on those days!
2011-02-13 21:45:08
2011-02-13 21:45:08
Chosen Answer
Kasey C: You are mixing up expense vs. "potential loss". If you want to count potential loss, then you have to deduct from potential income as well. If you try to deduct "potential income" from "actual income", you're "double-dipping". Example? Let's say your actual income is $10000, but your expenses are $5000, so your net income is $50000. However, if you claim that you *could* have made $12000, but you only made $10000, and you want to claim additional $2000 in expenses, so your net income is $3000? That's double dipping. Your actual income is $5000 ($12000-$2000-$5000).
2011-02-14 19:32:39
Kasey C: You are mixing up expense vs. "potential loss". If you want to count potential loss, then you have to deduct from potential income as well. If you try to deduct "potential income" from "actual income", you're "double-dipping". Example? Let's say your actual income is $10000, but your expenses are $5000, so your net income is $50000. However, if you claim that you *could* have made $12000, but you only made $10000, and you want to claim additional $2000 in expenses, so your net income is $3000? That's double dipping. Your actual income is $5000 ($12000-$2000-$5000).
2011-02-14 19:32:39