As a carpenter, you’ll spend your days constructing a variety of items for people which incorporate a great level of precision and skill. You’ll need to copy this ability when filing your tax return. With so many different deductions and credits, as well as tax codes, it takes a keen eye to make sure everything is level.

If you work for a specific company, you will receive a Form W-2, Wage and Tax Statement, from your employer at tax time. If you receive income from carpentry jobs outside your regular employer, you may be considered self-employed. Self-employment income is reported on a Schedule C, Profit or Loss from Business. For example, if you build your own furniture and sell it at a flea market on the weekends, you are considered self-employed. That income must be reported, either on your own or through a Form 1099-MISC from the parties you serviced. Net earnings over $400 are subject to self-employment tax, and you may need to make estimated tax payments to cover the amount you owe as reported on Schedule C.

However, you can reduce your taxes by claimed deductions for job related expenses that haven’t already been reimbursed. As an employee, you can claim deductions a miscellaneous itemized deduction on Schedule A, or a Schedule C if you are self-employed. You’ll be wise to keep all receipts for such expenses. You may be eligible to deduct:

• Fees from subscriptions to trade journals and publications
• Union dues
• Liability insurance premiums
• Equipment or tools replaceable within one year
• Safety equipment, such as steel toed boots
• Uniforms that you are required to wear, provided they are not suitable for everyday use
• State and other local government regulatory fees, flat rate occupational tax, or licenses, as long as they are not paid for initial certification.

If you have previously worked as a carpenter and are now seeking employment in the same field, you may be able to deduct job search expenses during your temporary unemployment period. The job you seek must be in the same field as previous, though holding some odd jobs during the unemployment does not affect your ability to deduct these expenses.

Work-related education is deductible if it meets certain requirements. It cannot qualify you for a new occupation or be used to help you meet the minimum requirements of your job. However, vocational classes, refresher courses, and classes that provide new developments are generally covered.

You may be entitled to other work related deductions if you are self-employed. These Schedule c deductions include:

• Business bad debts
• Car and truck expenses when traveling between work sites.
• Employee compensation, bonuses, and commissions
• Legal and professional fees
• Business use rental fees for property
• Advertising costs
• Tool repair and upkeep
• Supplies and incidentals
• Excise taxes and personal property tax
• Travel expenses, subject to limitations, for work away from your normal work home for more than a typical day: including tolls, parking, lodging, and meals