You are a self-employed person and you wear glasses. Like numerous other contractors, freelancers and small business owners, you may be wondering whether glasses are tax deductible for you. It is good to look for ways to decrease your tax burden.
Yes, you can take advantage of little-known tax exemptions and deductions. But can these exceptions be applied to your glasses? Are glasses tax deductible for self employed? Read on to learn about it.
Here is the thing, claim for glasses on the annual self assessment is not allowed unless your glasses are prescribed just be used at work. This work may be screen work or something like that. And if you wear glasses outside of work, technically they are used for dual purposes.
May be you are wearing the glasses always. The use of the glasses is not confined to just your business. Your prescription will clearly state whether the glasses are exclusively for business purposes. You can also use the prescription to prove that the glasses are not used outside of work. In such a case, the purchase can be categorized as an allowable business expense.
So, are glasses tax deductible?
For eligibility, you have to make sure that the total medical deductions are more than 7.5% of the gross income. Without additional medical expenses, your eyeglasses can not be deducted on your tax return. These additional expenses must exceed this 7.5%.
Let’s look at the question again: are glasses tax deductible for self employed? We clearly see that there are conditions.
If your Adjusted Gross Income is $50,000, 7.5% of this amount is $3,750. Qualifying medical expenses can only be deducted if it exceeds this amount. To claim these expenses deductions, your deductions must be itemized on schedule A. if standard deductions are taken, medical expenses can not be deducted.
When eyeglasses can be deducted on your taxes
If you claim medical deductions, you must claim the deductions for the year in which you got paid. Remember, it is not the year in which you rendered your services. In that case, with other deductions, you have to write the eyeglasses off. Unreimbursed expenses must be deducted in the year you actually paid for your eyeglasses.
Medical deductions can also be claimed for other qualifying dependents, such as your wife. But the rules are different from the ones that enable you to claim deductions for yourself.
If you are confused and you do not know whether glasses and eye tests are a viable expense, you have to know how it actually works. If you are a self employed person, the expense of your eye test is not allowable. And following the health and safety regulations is not a requirement for you.
When it comes to the actual cost of glasses, the same rules apply. But you can make the claim, stating that the glasses are intended exclusively for your work, and at least a portion of the expense is your business expense. Many self employed people use this opportunity.
Are glasses tax deductible for self employed? Yes, because the cost of the glass can be categorized as a business expense, and you are legally an employee of your own business. Your business is not a part of you; it is a different legal entity.
It is possible because your company is an entity, and you are regarded as an employee of the company. The expense of the eye test should be provided by your firm, and the doctor should clearly state it in the prescription that your glasses are to be used exclusively for work.
How to claim it
To claim it, the expenses should be included as part of your deductions. Your paid amount should not exceed 7.5 percent of your AGI. So, along with vision, you have to claim other expenses, including medical and dental expenses.
If you want to claim any expense, you have to keep complete records of it. It is true for all tax deductions. If you have applicable bills and receipts provided by doctors, keep them as records. Always make sure that your claim is backed by proper documentation.
A certified tax professional may be able to help you itemize your deductions. If you are not sure whether an expense qualifies, you can consult a professional. If you sense potential problems, a professional can help you in many ways. However, do not hire a professional if your deductions are not complex.
A business expense?
Are glasses tax deductible for self employed? Are glasses allowable for personal tax and corporation tax for employees and directors? There are specific rules about all these things.
The first thing you need to do is to undergo an eye test. People working for companies receive payments for regular eye tests. But as you are self employed, you have to pay for it. However, you need to do a test if you are having problems with your vision.
What happens if you spend a lot of time with your computer? When the doctor gives you a prescription, there should be a clear statement in the prescription that the glasses are not for general purposes, but only for display screen work. It is a proof that you are using the glasses for the purposes of your job.
If the requirements above are met, you can claim that the expense is for tax purposes. But the glasses are supposed to be used for work purposes only. So you should keep the glass next to your computer and use it only when you look at the screen.
But there is no reason to believe that you will be policed by HMRC if you wear glasses when you are not looking at the screen of your computer. This is a clever trick, and many self employed people use this trick. Are glasses tax deductible for self employed? Yes, they are.
Consequences of the claim
If you are a self employed person and you wear glasses almost always, you should be aware of the fact that most probably will not allow this expense in your accounts. If you want to calculate the profits of your business, you have to follow a general rule for that. If the expenses are not exclusively for a trade, tax deductions are not allowed.
That means the expense should be incurred solely for business purposes. To clarify the issue, we can use an example here. Suppose you have a car, and it is used both for private and business purposes. You can claim that the costs of purchasing and running the car are the costs of its business usage.
Are glasses tax deductible for self employed? Your glasses can be used both for private and business purposes. So you can make a claim for a specific percentage of the costs of the glasses. Let’s clarify it.
You make that claim because although the car is used for both purposes, there are distinctive periods of private and business use. That means you can make a claim for at least a part of the cost spent for your glasses. You can show it as a business expense and claim the full cost if you exclusively use the glasses for work.