Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Thanks Bill and Dusty.

to answer your questions...

I was a resident and am now a fellow (next level of training after resident).

I have thought about getting some help with this, but at the risk of revealing myself as a true geek, I kind of enjoy working on my taxes and doing so helps me to keep more in touch with my finances for next year. Further, this $1000 of schedule C income is the only part of my return that is not strait forward, so I question if paying the professional fees are worth it this year.

I had to apply for my first ever license in order to start moonlighting. Thanks to the state of MA, I also had to apply for my first renewal in 2004. The only reason that I needed the full license in 2004 was to moonlight. I cold have stayed on my trainee license and kept working my day job (being a resident). I then needed to apply for the license renewal in order to keep my full license, which is required by my fellowship. Thus, I think I am within the law to say that 100% of my initial license fee was for moonlighting. The renewal would be prorated and the fraction attributable to moonlighting is too small to make it worth while taking the deduction on sched. C.

If I can take 100% of the first fee toward sched. C, I would ignore cell phone, car, etc b/c I would have the income down to about $400 and would, I believe, avoid paying soc sec./medicare taxes.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.