Tax deductions for security specialists

You should report self-employment income on Schedule C, Profit or Loss from Business.
You can deduct expenses you incurred to provide your services.
You can’t deduct any expenses from a W-2 job where you earn wages.

For example, self-employed income would include payments you received for providing occasional security at special events, such as sporting events, private parties, or events involving visiting dignitaries.

For such arrangements, you should keep records of the income yourself. If you did jobs for a single person or company and were paid more than $600 during the year, you may get a Form 1099-NEC, Nonemployee Compensation. If your net self-employment earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. You may also need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.

Possible deductions for security specialists

You may be able to reduce your taxes by deducting unreimbursed job-related expenses from your self-employment activity. Make sure to keep receipts to prove these expenses.

Examples of some of the items you may be able to deduct include:

Subscriptions to trade journals related to your work
Dues for trade associations or unions
Insurance premiums for protection against liability or wrongful acts
Specialized equipment or tools that are replaceable within 1 year
The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear
State or local government regulatory fees, licenses, or flat rate occupational taxes, provided these occupational taxes are not paid for initial certification or licensing
Business bad debts
Car and truck expenses when getting from one workplace to another within the general area where your business is located
Employee salaries or other forms of compensation, such as bonuses or commissions
Legal and professional fees, such as accounting or legal advice that are directly related to the operation of your business
Rental expense for business-use property, such as trailer and equipment rentals
Travel expenses for traveling away from your business home if you are required to be away from home for longer than an ordinary day's work--examples of deductible travel expenses include transportation by car, air or bus, tolls and parking fees, lodging, and meals

You may be able to deduct work-related education courses or seminars if they meet certain requirements. Courses that typically meet the requirements include:

Refresher courses
Courses on current developments
Vocational courses

However, you can’t deduct courses that qualify you for a new trade or business or that help you meet the minimum education requirements of your present trade or business. For example, a security specialist can't deduct the expenses of going to a police academy to become a state police officer from their self-employment income, but they may be eligible for one of the education credits.

Want more information about what you may be able to deduct? We can help. A Jackson Hewitt Tax Pro can investigate all the deductions that you may be entitled to and will help you file a complete and accurate return. Taxes can be complicated, but you are not on your own. Contact us today.