What Can I Claim on My Taxes if I Have a Second Job Besides My Home Business?
Taking tax deductions reduces the amount of tax you pay in any given year. This is because the tax deduction reduces your gross income subject to income taxation. When you pick up a second job in addition to the business you own and run, you can take deductions related to that job in addition to the deductions you take for your own business.
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Business Use of Car
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If you use your personal car for business use at your second job, you may deduct the costs associated with using it. You may deduct the actual expenses of keeping the car in service or you may deduct the mileage you put on the vehicle. If you deduct the mileage, you must keep track of it and prove how much you've driven. You cannot take an actual expense deduction and a mileage deduction.
Medical and Dental Expenses
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You may deduct medical expenses as well as dental expenses. When you take this deduction, include it on Schedule A. As of 2011, you are not subject to limits on adjusted gross income. This means you may deduct the full amount of the premiums you pay for health insurance as long as your second job does not pay for the premiums and your insurance is not part of a group health insurance plan.
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Employee Business Expenses
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When you work for another company, outside of your own, you may deduct the cost of your expenses as an employee. You can deduct business expenses for your own business, as well, but the deduction for employee business expenses covers expenses that you must pay to perform your second job and for which your second employer does not reimburse you.
Business Travel Expenses
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If your second employer requires that you travel as part of your job, you can deduct those travel expenses. Expenses related to hotel stays and meals are deductible, though meals are deductible only up to 50 percent of the cost of the meal or 50 percent of the IRS's established daily allowance for meals. These items also are included on your Schedule A form and kept separate from your business tax deductions for travel, entertainment and meals for your business.
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