yolaw
New Member
Posts: 1
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Post by yolaw on Oct 14, 2021 13:43:03 GMT -5
Hey! Clinical Trial Participation was my main source of income for 2020 and from what I read on the board that means I will need to file as self-employed and cop the self-employment tax (Ouch!). As a new immigrant out here (originally from Australia where they don't tax clinical trial income), I was wondering if there's any other tax deductions other than mileage and accommodation expenses? Any other necessary insights you'd be to sharing would be super appreciated! Cheers!  |
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Post by ac on Oct 16, 2021 20:18:22 GMT -5
Looks like you understand things well. Better than most people who do studies for a living. In addition to mileage and accommodations you can also claim per diem. Every time you spend the night away from home for work(studies) you can claim per diem. That does not include nights you spend in-house in a clinic. Look it up to get more info on it. Make sure to keep a log of mileage including where you are going and why. If you get audited and don't have a log you will owe a lot in taxes and penalties. Keep receipts for hotels. Good luck.
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Post by simonsays on Oct 19, 2021 6:08:26 GMT -5
Lol, I've been taking the standard deduction for meals for the nights that I spend in a clinic (as long as it's at least 50 miles from home, of course). Don't take my advice, I really don't know what I'm doing. But I'm asking is that wrong?
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Post by ac on Oct 19, 2021 7:25:17 GMT -5
Lol, I've been taking the standard deduction for meals for the nights that I spend in a clinic (as long as it's at least 50 miles from home, of course). Don't take my advice, I really don't know what I'm doing. But I'm asking is that wrong? Yes, that is wrong. Obviously you can't deduct meals if you are being provided meals for free as part of your contract. |
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Post by vark on Oct 19, 2021 15:01:49 GMT -5
Lol, I've been taking the standard deduction for meals for the nights that I spend in a clinic (as long as it's at least 50 miles from home, of course). Don't take my advice, I really don't know what I'm doing. But I'm asking is that wrong? Yes, that is wrong. Obviously you can't deduct meals if you are being provided meals for free as part of your contract. I'm not convinced. The per diem rule is a very general rule. Some people spend $1000 for lunch, some spend $1.50. The irs decided it would make more sense to just estimate it. It's around $50 a day, slightly more complicated than that but that's how i estimate it. Feel free to point to a specific ruling on this point; I'm no tax expert. my main writeoffs are miles, per diems, any actual hotel or plane fare, tolls, 1/2 my internet bill, most years a cheap laptop. some professional dues and uing education expenses. |
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Post by simonsays on Oct 20, 2021 8:06:51 GMT -5
Yea. The IRS doesn't rely on common sense (except for the specific sections of the tax code that mention "common sense" or "reasonable expectation"s). The IRS relies on a byzantine and sometimes archaic set of codified tax law. And as far as I could tell, the IRS says I have the right to claim either itemized deductions or standard deductions for self-employment tax purposes. The standard deduction includes meal and incidentals for when I travel away from home (over 50 miles). Different rates for different localities, at different times of the year. So that includes when I'm in the clinic if it's in a different city than my hometown. Does it make sense? No. Is it fair? Probably not, if you look at that one specific loophole. But taken as a whole, tax law isn't fair, but it is the law.
Now, if someone can show me where it says I cannot claim standard deduction if I didn't pay for any meals that day, then I'll concede. But until then, we're two people, neither of us are tax professionals, and we're just discussing on an internet forum.
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Post by ac on Oct 20, 2021 9:10:07 GMT -5
Yes, that is wrong. Obviously you can't deduct meals if you are being provided meals for free as part of your contract. I'm not convinced. The per diem rule is a very general rule. Some people spend $1000 for lunch, some spend $1.50. The irs decided it would make more sense to just estimate it. It's around $50 a day, slightly more complicated than that but that's how i estimate it. Feel free to point to a specific ruling on this point; I'm no tax expert. my main writeoffs are miles, per diems, any actual hotel or plane fare, tolls, 1/2 my internet bill, most years a cheap laptop. some professional dues and uing education expenses. Sounds like you could be in trouble if audited. Is half you internet use used looking for studies? If not then you can't claim 50% of your internet. My accountant said the IRS is cracking down on cell phone and internet deductions. If you would have them anyway then you can't claim them as a deduction. Same with the computer if it's not for 100% business use. What professional dues and education expenses could possibly be deductible for doing studies? |
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Post by vark on Nov 1, 2021 3:17:39 GMT -5
my dues and education expenses are from another of my businesses. you could be right on the internet and computer. again i'm no tax expert. i cannot do studies without a computer and internet, and arbitrarily decided 50% sounded reasonable, but i'm happy to have it adjusted if their rules are different.
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