Tax Tips For Independent Adjusters

Tax Deductions For Independent Adjusters 

 Everyone wants to know what they can legally file as a tax deduction. Take a deep breath, and let go of tax season anxiety, help is on the way.      

“Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund.” – F.J. Raymond

Taxes are a part of life, but they don’t have to be as stressful and frightening as they’re often made out to be. Let’s talk about some tips for tax season!           

Get A CPA.

Did you you know there are Certified Public Accountants (CPA) who specialize in small business taxes? The very first thing you should do is find a CPA who is either in your area or who can work online to assist you with filing taxes. There are so many reasons why this is important. A CPA who specializes in small business taxes will know the ins-and-outs of how to get you the most deductions possible. In order for CPAs to maintain their license, they are required to keep up with current tax laws, this means they will know about the year-to-year changes and incentives that could directly affect you as an independent insurance claims adjuster. Do some searching online, and ask your friends and colleagues if they have a trusted CPA who they would recommend. It will make a world of difference. And, you can deduct the CPA’s fee as a business expense!     

Common Deductions for Insurance Claims Adjusters 

Lets talk about what records to keep for tax deduction purposes!

VEHICLE ALLOWANCE

● Mileage driven (Try MileIQ)
● Parking fees
● Tolls
● Repairs
● Depreciation
● Gasoline
● Oil 
● Registration fees

Office Supplies

● Paper
● Ink
● Software
● Docusign
● Paper clips
● Postage stamps
● Presentation folders
● Copying costs
● Overnight deliveries
● Stationary
● Pens
● Printer/Scanner
● Stapler
● Computer
● Internet fees 
● Greeting cards 

 

Continuing Education

● State licenses
● Renewals
● Courses
● Certifications
● Subscriptions to technical, professional, and trade journals 
● Books
 

Office Space

● Home office
● Utilities – heat, lights, power, telephone service, internet, water, sewage 
● Reconditioning floors
● Repainting the interior or exterior walls
● Cleaning and repairing roofs and gutters
● Fixing plumbing leaks
● Office Desk
● Repairs

Insurance

● Health insurance

● Long-term care insurance
● Dental insurance
● Business insurance
● Part of your homeowner’s insurance
● Vehicle insurance 

Travel For Work

● Conventions and conferences (Hello AdjusterCon!)
● Meals and entertainment
● Flights
● Baggage fees
● Taxis
● Hotels
● Tips you need. If you are looking specifically for offline maps, this is one of the best options currently out there. Available for both iOS and Android. 

Get It Done! 

We cannot stress enough how finding a good CPA can save you money and cut out stress. If you want to do some research on your own, check out this 2018 Business Expenses Guide provided by the IRS. 

If you have any tax tips, or apps that help you with record keeping and tax related business, please let us know in the comments! 

 
 
 

4 thoughts on “Tax Tips For Independent Adjusters

  1. Most of this works if you are 1099 but if you are paid by w-2, you can’t deduct any of it anymore. It all falls in the standard deduction amount so unless you have very large medical expenses, nothing is used.

  2. My accountant has told me that I’m not able to write off any of those expense because my adjusting status for the year was a temporary employee and I had received a w2, not 1099. I talked to the independent firm that I work through to see if I could get some of my commissions paid as expense reimbursement and they were unwilling to do that. They explained it to me that the insurance companies were requiring them to have us as W2 employees. Is there anyone with some guidance on this? If that is the case anymore then it doesn’t make sense to do what we do as catastrophe adjusters because we’re not making the money for our time that we once did.
    Has anyone else had the same issues?

    1. I think it should be challenged. If they consider us employees and not contractors they need to furnish our computers, estimating programs ladders,etc. When I was a contractor and went through an audit, I was told if I furnish someone the tools i cant treat them as a contractor, i have to pay the taxes on what i pay them as an employee and since i told them what time to be at work that to is an employee. Almost bankrupted our biz. So is companies dont tell us to come to an office or what time to open our computers to start and what time to end our day, we should be contract and get 1099s, not w2.
      Dont know about everyone else but not being able to deduct $42,000.00 in hotel bill’s etc is not really fair , but taxes never is we have to adjust to play their game just like the rich do. Tax plan, start a biz related to your work. Have you bought a drone? Give your drone biz a name make it a c-Corp and you pay it when you use it. And make extra money when not on assignment. Iput your hotels etc in the c-Corp name sell your truck to the Corp. Get some of the deductions that are available. Why you think most mega rich own charities they take themoney and the charity pays them 80% of what it takes in and buys cars, planes, boats, etc,pays them a large salary for administration, 10% for advertising and an employee and the needy that the charity was set up for get 10%, if they are lucky. Are they breaking any laws, no not at all. Who set it up that? You guessed it.
      So we start a business to help us with taxes, yeah more paperwork, but some better than ever tax deductions.

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