I'm a Dogsitter - Can I deduct locksmith expense as business expense on taxes?

But isn't it the OP's fault for locking themselves out? Couldn't the IRS argue this was a personal mistake and not a necessary business expense? Just curious because I'm also self-employed and trying to figure out the line between personal and business expenses.

That's a fair question. The IRS looks at whether an expense is ordinary and necessary for your business, not whether it resulted from a mistake. Locksmiths are a legitimate business expense when they're needed to continue your work. Think of it like this - if a plumber accidentally drops a tool down a drain while working, the cost to retrieve it would still be a business expense even though it was technically their "fault." For self-employment, the key is whether the expense occurred in the context of your business activities. Since OP was actively working and needed to get back in to continue caring for the dog, it meets the business purpose test. The expense wouldn't have happened if they weren't performing their job duties.

How exactly does taxr.ai determine what's deductible? Does it just use general rules or does it take into account your specific business type? I'm a freelance graphic designer and always confused about what I can write off.

I've tried other tax software before and wasn't impressed. Does this actually save you money compared to just using TurboTax or something? Seems like another service trying to cash in during tax season.

It analyzes your specific business type and applies the relevant tax rules to your situation. For instance, as a landscaping business, it recognized equipment purchases differently than it would for someone in a service industry. For graphic design, it would understand industry-specific deductions like software subscriptions, computer equipment, and client meeting expenses. I was skeptical too, but it actually found over $2,300 in deductions I would have missed using my regular tax software. The difference is it actively analyzes your documents and business context rather than just having you fill out forms. It connected patterns in my expenses that I hadn't realized were deductible as business expenses.

Wait, how does this actually work? Does someone else talk to the IRS for you? I don't understand how they can get you through faster than just calling yourself.

This sounds like complete BS. Nobody can magically get through the IRS phone system faster. They probably just charge you to wait on hold, which you could do yourself. And I doubt an IRS agent would give a definitive answer about a specific deduction over the phone anyway.

They don't talk to the IRS for you - they use technology to wait in the phone queue on your behalf. When they reach an actual IRS agent, you get a call to connect directly with that agent. You do all the talking yourself, they just handle the hold time so you're not stuck with your phone to your ear for hours. The IRS agents absolutely can and do provide guidance on deduction questions - that's literally part of their job. The agent I spoke with explained the "ordinary and necessary" business expense rule and confirmed that expenses incurred while actively conducting business (like a locksmith during pet sitting) generally qualify. Of course they won't give binding rulings over the phone, but they provide valuable direction based on tax code.

Thank you so much for this advice! I've been tracking mileage but hadn't thought about my phone bill. Quick question - for clothing, does it have to be special "uniform" type stuff or can I deduct clothes I wear specifically for dog walking (like specific shoes I only use for that)?

The clothing needs to be specifically for your business and not suitable for everyday wear. General clothes, even if you only wear them for work, aren't deductible. However, if you have shoes that are specialized for dog walking (like specific work boots) or shirts with your pet sitting logo, those would qualify. For your phone bill, you'll need to determine what percentage is used for business. If you use your phone 60% for business calls/texts with clients, then 60% of your bill would be deductible. Keep good records of this calculation in case of an audit.

Do you need to keep all receipts for small purchases like poop bags and treats? Seems like a lot of work for small deductions.

Yes, you should keep receipts for everything! Even small purchases add up over the year. I use a simple phone app to photograph receipts right when I buy something - takes 5 seconds and saves me headaches later. The IRS can ask for documentation on any deduction, regardless of size. Plus those "small" expenses like poop bags, treats, and cleaning supplies can easily total $200-300+ per year. That's real money when you're filing Schedule C as a small business owner. My accountant always says "if you don't have a receipt, you don't have a deduction." Better safe than sorry, especially with all the scrutiny on gig economy workers these days.