Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Can you deduct job related expenses if they exceed your income from the job? I was recently elected to the state legislature which pays a minimal "salary." My expenses will exceed the pay.

Thanks, Bill
Print the post Back To Top
No. of Recommendations: 0
Can you deduct job related expenses if they exceed your income from the job? I was recently elected to the state legislature which pays a minimal "salary." My expenses will exceed the pay.

Congratulations on your election.

Paul gave an answer to your earlier question: http://boards.fool.com/Message.asp?mid=13830666. Given your strange situation, I don't see any problem with the expenses exceeding the income. It will be a miscellaneous itemized deduction subject to the 2% of AGI exclusion.

Another possible approach would be to treat the expenses of your service as a charitable contribution. I'm not sure if this would fly, and I don't have access to case law to see if it's ever come up. Perhaps one of your new colleagues will have some information gained from experience. Since I assume you won't be taking office until 2001, you don't need a definite answer for a while. Do track your expenses so you have the information once you know what to do with it.

TMF ExRO
Phil Marti
Print the post Back To Top
Advertisement