2016 Savings

  • FrankN
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Replied by FrankN on topic 2016 Savings

Some people take very aggressive stances on their deductions / business expenses. Its a risk/reward thing. You might not get caught by the IRS, but if you do, you could pay dearly!
2 years 8 months ago #1

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Replied by Lexie on topic 2016 Savings

Breakinger wrote:

Wanderer wrote: Writing off business expenses will be determined by whether you actually incurred such expenses (according to IRS Regulations) and we talk tax write offs ... we need to have income before we can apply a tax write off. Love the take a tax write off when the person doesn't earn enough to really take write offs. Like the national health care.

I have a friend that always tries to take every single tax write off that he can. He works as a home health aide and thinks that every single expense related to his vehicle and even the food he eats while driving there should be written off. I don't know if he actually ends up finding an accountant that will let him do this, but I know that he usually ends up paying in each year.


If he is contracted then he should be able to use all of the vehicle and mileage deductions. If he is employed by the home health company then he probably can't. We have found that being the contractor in these cases is the way to go when it comes to write offs and deductions.
2 years 9 months ago #2

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Replied by Breakinger on topic 2016 Savings

Wanderer wrote: Writing off business expenses will be determined by whether you actually incurred such expenses (according to IRS Regulations) and we talk tax write offs ... we need to have income before we can apply a tax write off. Love the take a tax write off when the person doesn't earn enough to really take write offs. Like the national health care.

I have a friend that always tries to take every single tax write off that he can. He works as a home health aide and thinks that every single expense related to his vehicle and even the food he eats while driving there should be written off. I don't know if he actually ends up finding an accountant that will let him do this, but I know that he usually ends up paying in each year.
2 years 9 months ago #3

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Replied by FrugalFran on topic 2016 Savings

The expense deductions have been a confusing area because we're paid in the form of non-accountable per diem without receipts being required and none of it is taxed. Most people in the industry have a lot of trouble taking deductions, so we don't bother. However, we're getting a new accountant this year and we'll see what he has to say.
2 years 9 months ago #4

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Replied by Lexie on topic 2016 Savings

35% is a big chunk FRANKN. Good for you. We actually sold a house this past year and are looking at capital gains. Maybe. We barely broke even just to get out of the situation. Our savings are better than they have ever been but nothing is drawing much interest these days. I wish you all the luck on your new home. :)
2 years 9 months ago #5

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Replied by FrankN on topic 2016 Savings

You can't take any personal travel expenses, and depending on your other deductions, income levels, and business type, you may be able to take some of your travel expenses.
2 years 9 months ago #6

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Replied by Wanderer on topic 2016 Savings

Writing off business expenses will be determined by whether you actually incurred such expenses (according to IRS Regulations) and we talk tax write offs ... we need to have income before we can apply a tax write off. Love the take a tax write off when the person doesn't earn enough to really take write offs. Like the national health care.
2 years 10 months ago #7

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Replied by Moneyes on topic 2016 Savings

FrugalFran wrote: it's hard to find a balance between saving and the travel expenses.


Can't you take business related travel expenses and write them off on your taxes?

https://www.irs.gov/taxtopics/tc511.html

I don't know your husband's exact situation, but that IRS link should help you determine if you guys can get money back from the IRS for this purpose. It's worth looking into at least, because if you can, you take that refund and put it into savings.
Last edit: 2 years 10 months ago by Moneyes.
2 years 10 months ago #8

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Replied by FrugalFran on topic 2016 Savings

We did terrible. My husband is in the gas pipeline industry and it was a very depressed year for that business. This year is supposed to be much better, but there may be a lot of travel involved and it's hard to find a balance between saving and the travel expenses. I'm determined to save at least 40%, though, to make up for last year.
2 years 10 months ago #9

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Replied by Wanderer on topic 2016 Savings

In my readings on this subject the percentage that keeps cropping up is 10% or more. This percentage seems to be some kind of unofficial standrard to toss out. As you know this has to be a personal decision based on your own needs. Also, have read a person should establish an Emergency Fund of 3 to 6 months cash. So, you need to think about what works for your family.
2 years 10 months ago #10

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Replied by Breakinger on topic 2016 Savings

We did okay. With my husband's job change, we are finally not living paycheck-to-paycheck anymore, which is definitely something new for us. I would say that we were able to save about 20% last year and I'm really looking forward to increasing that for this year. What do you think is the best percentage to save each year?
2 years 10 months ago #11

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2016 Savings was created by FrankN

How did everyone do regarding savings for 2016? I was able to save about 35% of my salary, which I was really really happy with. I have been trying to save as much as possible for a house next year.
2 years 10 months ago #12

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