My MIL has filed our taxes with TurboTax for the past 6 or 7 years. Before that, she worked at H&R Block. My husband and I are both Independent Contractors filing Small Business expenses. My husband does in home furniture repair and has very high mileage every year. My MIL has not been using any of our others expenses for deductions because "it would make your taxable income too low and trigger audit." We have liability insurance, business license, supply expense (wood, polyfill, tools, etc), cell phone expense, property tax (does this count, I work from home), other deductions such as church contributions and standard $600 donations. Is this valid?
For the past few years, we have been having to pay the State of Alabama every single year. If we don't claim the above on the federal return, could we claim them on the state return to lower what we owe the state?? We had to pay over $800 last year.
Thank you so much!!
