By Julian Block
Question: I’m a freelance writer who will be traveling to Gainesville for the ScienceWriters 2013 conference. I’m pretty sure that I’m entitled to claim some deductions on Schedule C of Form 1040, but what sorts of expenses can I write off, and can I deduct them totally?
Answer: The law allows you to deduct 100 percent of the conference registration fee. Also entirely deductible are travel between your home and Gainesville and hotel charges.
There’s a limitation, though, for meals not covered by the fee, including both what you eat en route and while you’re in Gainesville: Deduct only 50 percent of those expenditures. For travel using your car, deduct actual expenses or a standard mileage rate. For 2013, the rate is 56.5 cents per mile. Whether you claim actual expenses or the standard rate or the cost of a rental car, also deduct parking fees, as well as bridge, tunnel, and turnpike tolls.
Stay within the speed limit. IRS regulations and rulings draw the line at deductions for traffic tickets.
Some often overlooked tax relief remains available for lodging costs even when your spouse, significant other, or someone else tags along only for fun. You’re entitled to a lodging deduction based on the single-rate cost of similar accommodations for you — not half the double rate you actually paid for the two of you.
Another plus is that deductions for NASW conferences don’t just reduce the amount you show as profit on Schedule C, thereby reducing the amount of your business income subject to income taxes. They also reduce the amount of your business income subject to self-employment taxes, as calculated on Schedule SE. Many freelancers get nicked more for selfemployment taxes than for income taxes.
Question: I’ll be paid for my talk at a writers’ conference. Is a charitable-contribution deduction available to a speaker who declines an honorarium and asks that the money be donated to a charity he or she picks?
Answer: Yes. But the speaker still has to declare the honorarium as income. Note that you derive no benefit from a donation deduction if you pass up itemizing on Schedule A of Form 1040 for contributions, state income taxes, and the like because it’s more advantageous to use the standard deduction.
The no-questions-asked standard deduction is a flat amount based mostly on filing status and age that’s adjusted annually to reflect inflation. For 2013, the basic standard deductions are $12,200 for joint filers, $8,950 for heads of household, and $6,100 for married persons filing separately and singles. The deductions for individuals age 65 or older or blind increase by $1,200 for married persons and $1,500 when filing status is single or head of household.
If you anticipate that you’re going to claim the standard deduction, decline the honorarium before you become entitled to it and required to declare it. Assign the payment to your favorite philanthropy.
Julian Block is an attorney and author based in Larchmont, N.Y. He has been cited as: “a leading tax professional” (New York Times); “an accomplished writer on taxes” (Wall Street Journal); and “an authority on tax planning” (Financial Planning Magazine). For information about his books, visit julianblocktaxexpert.com.
