This question is probably best left to a tax professional

But since it is dealing with small time money (less than 1k) I’m gonna ask the hive anyways. I figure there are enough independent contractors here to know the answer.

In my side-job, for legal and tax purposes, I am an independent contractor. I have to attend a seminar, take 2-3 exams, and pay a fee annually for my certification. I supply 100% of my equipment short of a badge that I get upon completion of my certification. I do not have an office; I would consider my office to be my apartment. It is my understanding that my mileage to and from my work assignments is not considered commuting miles and is therefore a business related expense, and therefore is tax deductible. Is this correct?

Okay, assuming that the mileage is indeed tax-deductible, let’s throw a kink into it. I live in town A, but frequently will go “home” and visit my family in town B. A and B are 150 miles apart. While I am home, I will try to pick up an assignment. I rarely go home for the sole purpose of these assignments, but often will not go home if I don’t have one.

Let’s say the assignment is in town C. Would the mileage be from
- A to C to A?
- B to C to B?
- A to C to B?
- 2x(A to C to B) — 2x(A to B)
- ???

I’m not trying to beat or cheat the system, but I am trying to get everything that I’m “entitled” to.

I'm no tax pro, but we also have a side business.

Assuming you have work in each location:

A -> B -> C yes for each. Now, if you return to B just to visit? You should still be able to claim your return milage from C to A, if B happens to be along the route then you're fine, otherwise you claim the milage from C -> A...unless you need to pick up "business supplies" in B.

There is never any work at location A or B--A is my apartment, B is my parents house. C would be an assignment location. It is my understanding that since my "home office" is my apartment, I can deduct the mileage to and from the assignments.

Just to set an example, lets say that I am going from Bloomington to Chicago, and picking up an assignment in Joliet. Would I deduct mileage from Bloomington to Joliet to Bloomington? Or Bloomington to Joliet to Chicago? Map for example, note that the ABC do not correspond to my example above:
http://www.google.com/maps?saddr=N+Madison+St&daddr=IL-171+S%2FCollins+St+to:W+Congress+Pkwy&hl=en&sll=41.488006,-87.882385&sspn=0.570937,1.352692&geocode=Fb-6aQIdEAqy-g%3BFQjEeQIdOB7A-g%3BFVv4fgId78vG-g&mra=ps&t=m&z=8

Now, it might not always be roughly halfway. Sometimes it would be more like this: http://www.google.com/maps?saddr=N+Madison+St&daddr=N+Mannheim+Rd+to:W+Congress+Pkwy&hl=en&ll=41.867004,-87.694244&spn=0.283794,0.676346&sll=41.87314,-87.875519&sspn=0.283766,0.676346&geocode=Fb-6aQIdEAqy-g%3BFe3QfwIdsvzC-g%3BFVv4fgId78vG-g&mra=dme&mrsp=1&sz=11&t=m&z=11

I think the first order of business you need to figure out is if your home is your office or not. If isn't this sounds like a regular commute to me.

we get mileage reimbursed from work @ $.565/mile. We are paid on the miles we rack up - if I take the long or short route - I get paid for whatever my odometer says.

Our accountant (actually the IRS) forces us to deduct the first 10 miles since I have a home office. Those first 10 miles are considered the commute to the office.

Enyar wrote: I think the first order of business you need to figure out is if your home is your office or not. If isn't this sounds like a regular commute to me.

I agree, but I'm not sure where else my "office" would be. I'm an ice-hockey referee. I work at any ice rink in the state; this year alone I worked at 11 rinks. The guy that assigns most of my games doesn't have an office--the address on the checks is his house. So where am I based?

In a given day, I can ref 4 games at 4 rinks. Would one of them be my office? Which one? I do not get a paycheck from any of those rinks.

Datsun310Guy wrote: we get mileage reimbursed from work @ $.565/mile. We are paid on the miles we rack up - if I take the long or short route - I get paid for whatever my odometer says. Our accountant (actually the IRS) forces us to deduct the first 10 miles since I have a home office. Those first 10 miles are considered the commute to the office.

Good to know. I guess this would answer that question of "is my home my office", since the rink that I ref at the most is less than 10 miles roundtrip from my apartment, so it would be a moot issue for that.

I really don't think I'd ever get audited if I mess it up or make a small mistake, and I'd be extremely disappointed if the IRS would be wasting their time for what would amount to almost nothing, but I do want to be all legal and proper and whatnot.

I really think you need to get your hands on an IRS form SS-8. It will explain who is and is not an independent contractor.

Regardless of what you and the person/company that gives you these jobs wants, the laws determine if you are an independent contractor, not any agreement between you and the employer.

The pertinent question here is, I think, whether you are required to be at specific locations at specific times, and who provides the tools of your trade.

I strongly urge you to visit a tax professional and ask him or her about the SS-8.

http://www.thetaxdude.com/uploads/LOCATION_OF_TAX_HOME_DETERMINES_TRAVEL_EXPENSE_DEDUCTIBILITY.pdf

This (although, free, and thus worth what you paid for it), seems to have some guidelines for you. If you scroll through a few pages (a curse on people who don't page number documents), it has a section on "multiple temporary assignments".

Note: After reading this, I will be visiting a tax professional. But we'll still let the thread play out.

EvanR wrote: I really think you need to get your hands on an IRS form SS-8. It will explain who is and is not an independent contractor. Regardless of what you and the person/company that gives you these jobs *wants*, the laws determine if you are an independent contractor, not any agreement between you and the employer. The pertinent question here is, I think, whether you are required to be at specific locations at specific times, and who provides the tools of your trade.

I have a very legalese looking document that I electronically sign before I can get any assignments every year. It is called "Independent Contractor Agreement". I DO have to be at specific locations at specific times, but I provide all the tools of my trade. Furthermore, it states explicitly that I am "not an employee of [organization] and that [mtn] is responsible for all applicable income and self-employment taxes."

davidjs wrote: http://www.thetaxdude.com/uploads/LOCATION_OF_TAX_HOME_DETERMINES_TRAVEL_EXPENSE_DEDUCTIBILITY.pdf This (although, free, and thus worth what you paid for it), seems to have some guidelines for you. If you scroll through a few pages (a curse on people who don't page number documents), it has a section on "multiple temporary assignments".

Based on that, my original thought is correct and I can deduct my mileage, less then 10 initial miles according to Pete240's information.

mtn wrote: I have a very legalese looking document that I electronically sign before I can get any assignments every year. It is called "Independent Contractor Agreement". I DO have to be at specific locations at specific times, but I provide all the tools of my trade. Furthermore, it states explicitly that I am "not an employee of [organization] and that [mtn] is responsible for all applicable income and self-employment taxes."

Again... You can sign all the documents you want or make any other sort of agreements. Regardless, tax LAW determines whether or not you are a contractor - nothing else.

mtn wrote:

Enyar wrote: I think the first order of business you need to figure out is if your home is your office or not. If isn't this sounds like a regular commute to me.

I agree, but I'm not sure where else my "office" would be. I'm an ice-hockey referee. I work at any ice rink in the state; this year alone I worked at 11 rinks. The guy that assigns most of my games doesn't have an office--the address on the checks is his house. So where am I based? In a given day, I can ref 4 games at 4 rinks. Would one of them be my office? Which one? I do not get a paycheck from any of those rinks.

You might not have an office. See pub 587 for more info on a home office.

In the situation where you ref 4 games in a day, mileage from one game to the next should be deductible. Mileage from home to game 1 and from game 4 to home would not be.

mtn wrote:

davidjs wrote: http://www.thetaxdude.com/uploads/LOCATION_OF_TAX_HOME_DETERMINES_TRAVEL_EXPENSE_DEDUCTIBILITY.pdf This (although, free, and thus worth what you paid for it), seems to have some guidelines for you. If you scroll through a few pages (a curse on people who don't page number documents), it has a section on "multiple temporary assignments".

Based on that, my original thought is correct and I can deduct my mileage, less then 10 initial miles according to Pete240's information.

I dunno man. It seems like home office and mileage deductions tend to be easy red flags for an audit. Once you figure out your tax affected savings, it may not be worth it. Especially if authority is coming from "Pete240" DatsunGuy" and "thetaxdude". Not that they are wrong, I've just never heard of this phantom 10 mile rule and I'm not sure the IRS will accept them as interpretations of the tax code.

These 2 statements are contradictory:

mtn wrote: There is never any work at location A or B--A is my apartment, B is my parents house.

mtn wrote: ... my "home office" is my apartment...

If there is never any work at your apartment, then you don't start working until you get to your assignment. Just like going to a "real" job.

If you have a home office, you have to be conducting business there.

As you have stated it, you have no office. It's your home, not your work.

However, let me add something to that...

It is very possible that you DO have a home office (even though you worded it badly). Where do you receive your orders? Where do you sit when you are filing your taxes? Where would you sit to make any detailed notes or reports after the game, plan your scheduled route to the rinks, or review new game regs?

I think you DO have an office, and in that case, your workday begins at the office.

EvanR wrote: I really think you need to get your hands on an IRS form SS-8. It will explain who is and is not an independent contractor. Regardless of what you and the person/company that gives you these jobs *wants*, the laws determine if you are an independent contractor, not any agreement between you and the employer. The pertinent question here is, I think, whether you are required to be at specific locations at specific times, and who provides the tools of your trade. I strongly urge you to visit a tax professional and ask him or her about the SS-8.

Naah. He's a sub. Pretty legit.

How would he ref an ice hockey game if he didn't show up at the starting time?

Guidelines like specific starting times and providing the tools of the trade are only opportunities to help the IRS determine CONTROL. If he has the opportunity to work for other rinks, turn down a game, etc, he's in control. The subcontractor relationship is legit.

Oh, and SS-8 does not explain who is and is not a subcontractor. It is for gathering information and requesting the IRS make the determination based on that information.

SVreX wrote: These 2 statements are contradictory:

mtn wrote: There is never any work at location A or B--A is my apartment, B is my parents house.

mtn wrote: ... my "home office" is my apartment...

If there is never any work at your apartment, then you don't start working until you get to your assignment. Just like going to a "real" job. If you have a home office, you have to be conducting business there. As you have stated it, you have no office. It's your home, not your work.

SVreX wrote: However, let me add something to that... It is very possible that you DO have a home office (even though you worded it badly). Where do you receive your orders? Where do you sit when you are filing your taxes? Where would you sit to make any detailed notes or reports after the game, plan your scheduled route to the rinks, or review new game regs? I think you DO have an office, and in that case, your workday begins at the office.

SVreX, you're exactly right--I just hadn't looked at it that way. I do indeed take the games and fill out the game reports at home.

Thanks for the replies everyone. I'll be talking to my dads tax guy tomorrow, as it turns out that I was a dependent of my dad for the first 5 months of the year.

Report back with what you find!

Turns out that I am indeed an independent contractor, and my apartment is indeed my office, and the mileage is indeed something we can write off. He didn't say anything about the 10 mile deal, but he really didn't put too much time into it anyways.

Some things to note: I am (was) a dependent of my father for the first 5 months of 2012. Because of this, my taxes are getting filed with my parents and my little brother. So we have my moms full time job, dads full time job, little brothers part time jobs, my part time jobs, and for the last 7 months, my full time job all going on the same thing. Even if this is wrong, they are not going to be coming after us for the little amount that we messed it up.