Are you employed as a custodian? As well as cleaning and organizing your employer’s business, you’ll need to do the same to your expenses come tax time if you want to save the most money. Your employer will send you a Form W-2, Wage and Tax Statement, provided you work for the company and are considered an employee (meaning they control what you do and how you do it). If you receive payments for custodial services you provide outside of your employer, these earnings are considered self-employment income. This type of income is reported not through a Form W-2, but a Schedule C, Profit and Loss from Business. A custodian who provides their own supplies and determines their own schedule and practices may be considered self-employed.
Self-employment tax applies to all self-employed individuals with earnings greater than $400, as reported on Schedule C. You may also be required to make estimated tax payments on the amount you report, in order to cover your income tax or self-employment tax.
You are able to deduct job related expenses that are not reimbursed. As an employee, you can deduct expenses on a Schedule A, Itemized Deductions. If self-employed, deductions are taken on a Schedule C. You may be able to deduct:
- Licensing/bonding fees
- Supplies that you provide, such as cleaning supplies
- The initial cost and regular upkeep of required uniforms, as long as they aren’t suitable for everyday wear.
As with all expenses you incur, you should keep receipts to serve as proof to your claim.