Question 1

What is a tax write-off?

Accepted Answer

A tax write-off (deduction) is a business expense that reduces your taxable income. If you buy a $2,000 laptop for your LLC and your combined tax rate is 34%, the laptop actually costs you $1,320 after the deduction.

Question 2

Can W-2 employees claim business write-offs?

Accepted Answer

W-2 employees cannot deduct work expenses on their personal return. However, if you have a side business or LLC, expenses for that business are deductible on Schedule C, even if you also have a W-2 job.

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