Tax Deductions

[Anonymous]

I have a couple of lobbyist friends who have their own shops and they keep telling me to take tax deductions on things e.g. entertainment, cars, etc.

I told them DH and I are W2 so not sure if we can take anything like that.

Thoughts? CPA is very conservative and doesn't push the envelope.

[Anonymous]

Not worth the trouble later. I'm with your CPA. Concentrate on making the most of the money you bring home and invest it well.
You must have high income. I take a lot of tax deductions, but I'm poor. I make $15k-$20k a year, file as HH, take EIC and saver's credit. I'm in total control over how much I work.
Just got a tax book to figure it out myself for 2026 how much I need to make at work and how much I can withdraw from my investments.
I get more money back that I pay in.
If you want to save money on taxes or invest better, learn to do it on your own. Nobody knows you better than you. I would not give IRS a reason to flag my return over a pencil deducted. Their customer service is bad and your dispute can go on for years.

[Anonymous]

Do you mean they think you should deduct them like business expenses? You don’t sound like you own a business. In that case, you can’t. Also entertainment is a very dicey category even if you did own your own business.

[Anonymous]

Nothing to take if you are w2.

[Anonymous]

Anonymous wrote:Nothing to take if you are w2.

+1 this will get flagged probably in the first scan of the return. Especially a car. 🙄 just do some googling. The IRS has extensive publications on what you are legally allowed to deduct.

Plus, it’s fraud. You either have morals or you don’t.

[Anonymous]

Anonymous wrote:I have a couple of lobbyist friends who have their own shops and they keep telling me to take tax deductions on things e.g. entertainment, cars, etc.

I told them DH and I are W2 so not sure if we can take anything like that.

Thoughts? CPA is very conservative and doesn't push the envelope.

They have their own businesses that can rightfully deduct things like this as business expenses. Now, do people charge all their meals through the business even though 25% are personal? Of course.

In order to deduct car expenses you need to register the car in the name of the business which many do. It’s also possible to deduct social club and CC memberships if you are in fact taking clients to these clubs. Sporting events tickets if you take a client, etc.

Of course many times someone just takes a friend who may work for a company that is or could be a client even though the friend is in no position to hire you.