Depending on your calling in life (or at least your current job), there may be tax deductions that you only qualify for as a professional. These career-specific deductions are in addition to tax deductions, credits and exemptions you would normally qualify for as an employee, self-employed professional, of business owner.

Keep in mind that professional deductions are “above-the-line”, or are deducted directly from income instead of as part of itemized deductions. Much like a tax credit, the deductions result in lower adjusted gross income (AGI) and potentially greater tax savings.

Teachers and Educators

Although many teachers take a miscellaneous itemized deduction in an attempt to recoup out-of-pocket expenses for their teaching activities, they often don’t meet the minimum deduction amount (2% of AGI) for the expenses to make a dent in their tax liability. However, a deduction of up to $250 that is subtracted from income on their 1040 (and not a Schedule A) helps reduce adjusted gross income before taking deductions. The educator expense deduction is available to certain teachers and administrators.

Artists

As a performing artist, there are probably expenses related to your craft that you must pay in order to work for clientele or employers. There is a deduction to lower your taxable income, provided that you meet certain requirements:

• You have had at least two employers that have paid you at least $200
• You have performance art-related expenses that are over 10% of your income earned as an artist
• Your AGI is less than 16,000 before the deduction
• You are filing your taxes as single or married filing jointly

National Guard or Armed Forces Reservists

If you are serving in the National Guard or Reserves, you can deduct expenses for job-related travel that is 100 miles or more away from you home, based on federal per diem rates for the destination city.

Government Officials

You must be a government official who is paid solely on a fee basis (i.e.: not salaried). If this is the case, all of your job-related expenses may be tax deductible. Unlike the other professional deductions, you must claim this on a separate form (Form 2106); from there, it will be deducted from your 1040.


If you are not an educator, performing artist, reservist, or government official, there may still be other above-the-line deductions related to your profession specifically. At the very least, you can still make itemized deductions.

You should always consult a tax professional for more details about the tax deductions and tax savings strategies you can take advantage of personally or in business. After all, professional services are also tax deductible; see “Equipment, Expenses, and Professionals for Hire: More Small Business Tax Savings” for more tax-reducing deductions that may also work if you are an employee.

References

Dianne Molving. Credits and Deductions Save You Tax Dollars

Untitled. Roy Lewis