Blog | WM. F. Horne & Company, PLLC


Job Search Expenses May Be Tax-Deductible


job search

Article Highlights:

  • Schedule A
  • Travel Expenses
  • Résumé Preparation
  • Job-Placement Services
  • Unemployment Income
  • Health Insurance

If you are looking for work, some of the expenses you incur may be tax-deductible, provided that you are looking for work within the same field. Unfortunately, expenses incurred when the job search is in a new field or a first job are not tax-deductible.

If you are an employee, job search expenses are deducted as miscellaneous itemized deductions on Schedule A. Thus,…

  • 22 Jun, 2017
  • Jacqueline Cran
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The IRS Has Become More Liberal With College Expenses

college expenses

Article Highlights:

  • Computers
  • Internet Access
  • Qualified State Tuition (Sec. 529) Plans
  • American Opportunity Tax Credit
  • Required for Enrollment or Attendance


Computers and the Internet have become integral parts of education by providing access to online courses, learning and research. It is virtually impossible to be enrolled in postsecondary education without a computer, which is needed to complete written assignments, type reports, prepare theses and access the Internet.

Recent tax regulations have acknowledged the fact that computers,…

  • 19 Jun, 2017
  • Jacqueline Cran
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Does Your Employee Misclassify You as an Independent Contractor Instead of as an Employee?

contractor vs employee


Article Highlights

  • Employee
  • Independent Contractor
  • Behavioral Control
  • Financial Control
  • Relationship
  • Request For IRS Determination
  • Self-Employment Tax

It is not uncommon for employers to misclassify employees as independent contractors, either to intentionally avoid their withholding and tax responsibilities or because they are not aware of the laws regarding the issue. If your employer reports your income on a Form 1099 (as opposed to a W-2), you are being treated as an independent contractor, not as an employee….

  • 15 Jun, 2017
  • Jacqueline Cran
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Can You Deduct a Home Office? Is It Worth It?


home office

Article Highlights:

  • Qualifications
  • Employee Issues
  • Method Options
  • Income Limitations
  • Relocation

“Home office” is a term used to describe the tax deduction for the business use of your home, which may or may not be an office. It is often misunderstood and claimed by those who don’t qualify for it or not claimed to the taxpayer’s best advantage. Understanding the requirements, options, limitations, advantages and disadvantages will help you determine if you qualify for the deduction…

  • 12 Jun, 2017
  • Jacqueline Cran
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Are You Ignoring the Household Employee Payroll Rules?


household employee


Article Highlights:

  • Household Employees
  • Tax Avoidance
  • Filing 1099s
  • Correct Procedures
  • W-2s, Payroll Taxes and Reporting
  • Overtime
  • Hourly Pay Or Salary
  • Separate Payrolls

If you hire a domestic worker to provide services in or around your home, you probably have a tax liability that you don’t know about – or one that you do know about but are ignoring. Either situation can come back to bite you. When the worker is your employee, your liability includes both withholding and…

  • 8 Jun, 2017
  • Jacqueline Cran
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Odds of Being Targeted by the IRS for Audit


Article Highlights:


  • IRS Audit Focus
  • Data Book
  • Tax Revenues
  • Audits by Income
  • EITC Top Audit Target

If you, like others, dread the thought of being audited by the IRS, then you should know that the IRS, like any good business, concentrates its efforts where they produce the best results (revenue)! Thus, its audit selection process favors returns that claim the earned income tax credit (EITC), for which a lot of fraud is prevalent, as well as…

  • 5 Jun, 2017
  • Jacqueline Cran
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Deductions Eliminated Under Trump’s Tax Reform Proposal


tax reform

Article Highlights:

  • Deductions the Proposal Retains
  • Itemized Deductions the Proposal Eliminates
  • Other Deductions the Proposal Eliminates

One of President Trump’s key tax reforms is to eliminate all individual tax deductions except for those that incentivize home ownership, charitable contributions and retirement contributions. Although the administration’s one-page outline of the proposed tax reforms provides little detail, if all of the deductions except those noted are eliminated, the reform will impact both itemized deductions and…

  • 2 Jun, 2017
  • Jacqueline Cran
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June Tax Due Dates




June 2017 Individual Due Dates


June 12 – Report Tips to Employer


If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are…

  • 1 Jun, 2017
  • Jacqueline Cran
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Tempted to Tap Into Your Retirement Savings? Read This First


retirement savings


Article Highlights:

  • Early-Withdrawal Penalties
  • Reduction in Retirement Savings
  • Exceptions from the Early-Withdrawal Penalty

If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional IRA or qualified retirement account, you will likely pay both income tax and a 10% early-distribution tax (also referred to as a penalty) on any previously untaxed…

  • 24 May, 2017
  • Jacqueline Cran
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Big Tax Breaks for Adoptive Parents




Article Highlights:

  • Qualifying Adoptions
  • Credit Amount
  • Credit Carryover
  • Qualifying Expenses
  • High-Income Credit Phase-out
  • Employer Adoption-Assistance Program

If you are an adoptive parent or are planning to adopt a child, you may qualify for a substantial income-tax credit. The amount of the credit is based on any expenses incurred that are directly related to the adoption of a child under the age of 18 or a person who is physically or mentally incapable of self-care.

This is a 1:1…

  • 22 May, 2017
  • Jacqueline Cran
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