Cait,
This is a bit more complicated than it may seem. This is due significantly to the new tax changes that took effect on 1/1/18. As a bit of background, I have run my museum conservation business for 30 years and have prepared all my tax returns. My partner is an executive director of a statewide historic site organization. I have worked with her on her tax returns, although I did not prepare them. So my disclaimer is that I have experience but I am not a licensed tax preparation professional.
1) In the previous law, employees were allowed to deduct "unreimbursed employee expenses" or some such term from their itemized deductions. But even under the old system, if you took the standard deduction, you could not claim anything, only if you itemized. With the new tax law (2018), the unreimbursed employee expenses have been removed as a deduction. Gone even if you itemize. That is my understanding.
2) If you also have a consulting business beyond your employment with a museum (or if you are an independent contractor with them), you should be able to deduct expenses (which your museum visits would qualify for) against income. If you do not yet have a consulting business, you can still start one before the end of the year and have this option. However, I would strongly suggest that you have some income from the business, so you actually have to go out and do billable consulting.
3) If you only work for a museum, your best alternative under the new tax law is for your employer to reimburse you for your expenses. That should have no tax consequences on you. This includes mileage that you drive for your employer due to them sending you wherever they want you to go, as well as all other expenses related to your work, including museum visits. This does not include commuting mileage to your primary place of work, unless you are an independent contractor, in which case you can deduct that as a business expense.
4) In spite of what an IRS agent says, the formula has worked in the following way. If you are on a trip that is partially personal and partially business, you estimate the percent of time spent on personal and the percent spent on business, which should equal 100%. Then you apportion costs to each using these percentages. This includes air fare/transportation, lodging, food, local expenses, plus 100% of museum-specific expenses. Again, under the 2018 new tax rules, you can not take this as an itemized deduction but can take it as a business expense if you have one (or are an independent contractor) or be reimbursed by your employer. Keep your receipts/records.
5) As with all tax returns, what you write is what goes to the IRS. Unless you are audited, your word is accepted. So give yourself the best advantage without violating the law. Again, 2018 is very different than 2017, so your options may be significantly altered. Best wishes.
Marc
From: Caitlin McQuade
Sent: Wednesday, June 06, 2018 2:24 PM
To: [log in to unmask]
Subject: [MUSEUM-L] Tax deductions for museum professionals?
Has anyone explored the tax rules for museum workers deducting the costs to visit museums?
I'm about to embark on international travel and expect to visit quite a few museums and historic sites. I'm not asking about deducting travel costs: the IRS is strict about business v. pleasure when traveling abroad, and this is otherwise a pleasure trip. But there's no question that visiting museums contributes to my abilities as a museum exhibit developer, and I also take photographs to use in teaching.
(It's possible the answers I seek are somewhere on the interwebs, but the keywords "museum," "taxes," and "deduction" return a haystack of information about soliciting donations.)
Thank you!
Cait
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