March 30, 2006 2:21 PM

April 15th is right around the corner...
Posted by at 2:21 PM

And if you're looking for some last-minute tax advice, take a look at this article by the Tax Mama herself, Eva Rosenberg.

Your Business Expenses Cost Too Much - When your company just provides a monthly allowance without having you turn in expense reports, those amounts are often added to your wages. You're meant to report your car and business expenses on Form 2106. Using Form 2106, you actually lose the benefit of many of those deductions.

Convince your employer to put you on an 'accountable plan' instead. You'll have to submit monthly expense reports. The benefits are worth the effort:
You wouldn't lose 50% of business meals expenses.
When reporting employee business expenses, 2% of your AGI ('adjusted gross income' is the last line on page 1 of your Form 1040) is subtracted from your total expenses. With wages of only $30,000, you lose $600. Earning $100,000 - that's a whopping $2,000.
If you don't own a home, you probably wouldn't itemize at all if not for the business expenses. You're losing the benefit of your standard deduction worth $5,000 if you're single; $7,000 head of household; $10,000 married.
This will reduce your AGI, and keep you out of the alternative minimum taxes, increase your tax credits, and more.