Our Accounting firm has had the great opportunity to service Police Officers and Public Safety Officers throughout for over 25 years.  Unfortunately, when we get new clients from a previous accountant, tax preparer or accounting firm we find many opportunities that their past preparer didn’t consider. The result is that the taxpayer in these professions will not take advantage of thousands of dollars that they are allowed to save over the course of their career.

These tax benefits are offered by the Internal Revenue Service, and should be used where applicable.  Many accountants and tax preparers do not understand the legal aspects of these benefits, or choose not to take the time to ask the correct questions to their clients. This results in the tax payer never having an understanding of what is and isn’t allowed for their benefit.

 First let’s cure a common myth.  The employees of The Internal Revenue Service are not bad people, they are actually very nice.  Their job is to make sure that tax payers are playing by the rules, simple as that.  The Internal Revenue Service also creates opportunities for tax payers in certain professions tbenefits that are allowed to you.

I won’t go into too much detail of when you can or when you can’t use these expenses, but here is a list of expenses that you may be able to use to benefit your tax situation in the event that you are a Police or Public Safety Officer.   Please present this to your accountant or tax preparer, and I’m hoping that they take the time and understand the laws and

Please note that if you are reimbursed by your employer, none of these expenses are applicable.  Only expenses that you pay out of your pocket may be used depending on your tax situation.

Cost during a detail, miles, meals, mobile phone, parking, travel etc.  That is not in your regular course of duty

Uniform allowance  Union dues, Association dues    Parking fees   Safety equipment and safety gear

Training costs     Education cost     Personal phone costs     Meals      Miles driven

Gym memberships      Safe Deposit Box     Books     Magazines and Journals     Internet Fees

Laundry, Insurance, Glasses (Safety and Sun)

The tax court allowed commuting miles as deductible for law enforcement officers only in the event that their department requires them to not only provide their own transportation, but to also begin their tour of duty the minute they leave their house until the minute that they return.

Training and Transportation Fees (airfare, taxi, boat),  For example, attending a three day work related educational seminar for example in Orlando, San Diego, or Las Vegas where your entire airfare and hotel accommodations are deductible and 50 percent of your meals are deductible.

457(b) Deferred Compensation hat use business expenses that are not reimbursed by their employer, and let the taxpayer use these expenses for their benefit.

A 457(b) deferred compensation plan is a defined contribution retirement plan for employees of local, state and federal governments and agencies, and certain non-profit organizations, like public schools and county hospitals. 457 deferred compensation plans are named after the United States Internal Revenue Code (IRS) Section 457. Annual contributions to the 457(b) deferred compensation plan changes every year.  We recommend that you use this to your benefit, but this depends on your particular financial situation.

General  Work Expenses

• The cost of annual Police Association membership fees
• The cost of Union Dues

·         A police officers transportation costs to their normal work station from home is not tax deductible. However, if a police officer is not going to their normal work station, e.g. to testify in court or attend a parole hearing and they are driving from home, and then the cost of transportation is a normal business expense and may be used.

·         A Police Officer is permitted to deduct the cost of one off-duty hand gun per year.  The cost of equipment and supplies, including ammunition, bullet proof jackets and vests or body armor, holsters, handgrips, handcuffs, holders, pouches, utility belts and gun cleaning materials. The cost of additional or more sophisticated guns, diving equipment and equestrian related equipment – if you paid for these items in addition to the amounts provided by the Police Department

• The cost of work-related magazines or professional publications

• The cost of work-related books or journals

• The cost of work-related mobile or home telephone calls and rental (you should keep a diary record of the number of phone calls you make for work for one month and then we can use that to estimate your usage for the whole year)
• The cost of work-related internet connection fees (you can only claim the proportion of your monthly fees that relate to work use, which could include emailing and research relating to your job)

• The cost of maintaining a home office if you are required to complete work at home (you should keep a diary to record how many hours per week you spend working from your home office)
• The cost of payments made to informants (provided that the payments are authorized under the policies of your employing police service, you can prove you paid the expense and you weren’t reimbursed for the cost. Payments can include cash or goods, such as cigarettes, food or a cup of coffee)
• The cost of maintaining your fitness, but only if you are required to maintain a very high level of fitness, well above the Police Force general standard. Members of special emergency squads, diving squads, police academy physical training instructors, and police officers who work regularly with police dogs and train them may be able to claim fitness expenses

• The cost of maintaining and training police dogs
• The cost of renewing any work-related licenses, but not including your normal drivers license
• Your tax agent fees (the amount you pay to your accountant to prepare your tax return each year)
• The cost of travelling to see your tax agent (you can claim the cost of travelling to see your accountant to have your tax return prepared. You should keep a record of the number of miles you travel and any other incidental costs such as parking, meals, accommodation etc.)

Meals and Travel

• The cost of buying meals when you work over-time
• The cost of parking, tolls, taxis and public transport if you are required to travel to attend seminars, meetings and training courses not held at your normal station (if you need to stay away overnight you can also claim for the cost of all meals and your accommodation unless you have been reimbursed for these costs by the Police Department).  This also includes airfare if traveling out of state.
• The cost of using your own car for work, including travel to attend meetings or attend training courses that are not held at your normal station (to claim for car costs it is usually best to keep a diary record of the number of miles you travel during the year for work purposes and then we can calculate the amount of your tax deduction at the end of the year)
• You may also be able to claim your travel from home to work if you have to carry bulky tools or equipment, for example police divers carrying scuba diving gear, provided there is no secure storage supplied at your work place

Work Clothing

·          The cost of buying items of your police uniform (including physical training clothing that is unique and distinctive to the Police Department)

·          The cost of laundry, dry cleaning, alteration and repair of your uniforms

·          The cost of buying sun protection items, including sunscreen, hats and sunglasses, if you are required to work outdoors

·          The cost of buying safety glasses, but NOT prescription glasses or contact lenses

Training

• The cost of work-related short training courses, provided the course directly relates to your CURRENT job (you can also claim for the cost of travelling to and from the course and any accommodation and meal expenses if you are required to stay away overnight)

• The costs of self-education courses run by a University. If you are studying, you can also claim for the cost of books, stationery, equipment and travel required for your course

Work Tools & Equipment

• The cost of buying and repairing equipment you use at work, including electronic organizers, laptop computers and mobile phones
• The cost of insuring your tools and equipment
• The cost of a stopwatch or other watch with special characteristics (for example for diving)