Did you know that there are many ways that being a librarian can save on taxes? You see, in many areas, the local government increases the property assessment value of your home each year. This valuation does not take into account how much your library earnings are actually worth, so you end up paying way more in taxes than you need to. Here’s why…
- 1 There is a cap on the tax-free basis for many activities
- 1.1 Entertainment expenses are deductible when the expenses relate to the performance of your business
- 1.2 You may be able to deduct your expenses for meeting space
There is a cap on the tax-free basis for many activities
One of these includes sales of books, periodicals, music, records, and other similar items. The sales cap is in place to protect the revenue of the Library System. While the sales price of your personal collections may be deductible, the sales price of any kind for your library and other exempt establishments is not. This means that you could lose out on thousands of dollars in potential taxable income each year if you do not properly itemize your deductions.
Entertainment expenses are deductible when the expenses relate to the performance of your business
For example, ticket sales for sporting events are fine, but so are admissions to your museum or meeting with members of the community. Do not include these tickets in your gross receipts for your tax return. This is a complex issue, but the IRS has issued detailed instructions on how to do it correctly. Contact an authorized tax professional to discuss your situation.
Travel expenses, such as airline tickets, are deductible as long as the travel is related to your work.
The only exception to this rule is if you have to fly out of your city to attend a conference. Then, only travel related to your work can be deducted. Your local library might have special tax rates for people who fly in for meetings. Call your tax professional to discuss these options.
You may be able to deduct your expenses for meeting space
Contact your local tax professional for more information on these options. You should also be aware that many parks charge a fee for using their facilities.
Local transportation costs can be deducted. If you use public transportation, see if your tax preparer can provide you taxwith a deduction for this expense. You will need to get a schedule from your local state office, city, or county so that you can keep track of the dates you spent this money. Be sure to document every receipt you claim. Your tax preparer will probably recommend that you get copies for your records, so you will have proof of these receipts should you need them for filing purposes.
Check out any literature that your tax preparer provides you with
Often, these seminars will give you additional information about local tax law. It can be very helpful, as well, to have an understanding of what these laws are if you ever need to file a local tax suit. You may also find that these seminars and workshops can be very helpful when you are preparing your annual tax return.
Ask your state or city about scholarships and fellowships
These can be wonderful ways to pay for college, especially if you are undecided about where you want to go to school. Scholarships and fellowships are available all around the country, and you never know when you may qualify to get one.
Join a tax preparation group
Many people feel intimidated by working with a tax preparer. But, the people who make your tax records are often former tax professionals who are eager to help you. Taxpayers often save a great deal of time and frustration by having someone they can easily talk to. In addition, members of these groups often charge very little in fees or services.
Check out the library
Many libraries offer a wide variety of resources for the tax filer. If you prefer to read instead of listening, look for books on tax preparation. The librarian will be able to direct you to periodicals and websites that can help you. If you like the sound of a book, visit a few libraries and see which ones are particularly helpful to the tax preparer.
Look into local public libraries
Most libraries offer some kind of reading area. Many libraries also offer publications on various tax topics. Many libraries also have small computers available for customers who want to do research online.