Tax write offs for the IC

[EMperson]

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So I'm trying to decide between two new jobs- one as an IC and one as an employee.
I've read all of the publically available pros and cons about being an IC including the ones posted here, but I'm still a little short on the specifics.
Aside from insurance (health, malpratice, disability, life, etc..), 403(b) or SEP-IRA contributions, medical licenses, and professional fees, what are some of the other big ticket items that you independent contractors actually deduct?
Can you deduct gas or public transportation costs? Can you deduct your meals? Can you deduct your internet, phone? Can you deduct student loans?

Thanks

 

[Sheerstress]

Generally you cannot deduct commuting costs to your "usual and customary" place of work, although you can sometimes find ways around this.

If you're working multiple places, especially locums assignments that you go to less often and are far away, you can sometimes deem them business trips, and do the usual deductions (e.g. mileage or gas $$, per diem food, lodging, and associated services).

Student loan interest is deductible, but only if you have an AGI of less than $65,000.

 

[southerndoc]

Deducting mileage is controversial, but generally IC's do deduct their mileage or a portion of their vehicle. Employees aren't allowed to do this.

SEP's allow you to contribute up to 49k/yr, all of which is deductible. You can deduct health, but not dental insurance. You can also deduct malpractice insurance, and although you can deduct disability insurance, it's not advisable. If you do not deduct disability insurance, then any benefits you receive when you are disabled will be tax free. Life insurance isn't deductible.

You can deduct everything related to your "business," which includes, pens, paper, computers, cell phone (if you use it for work-related tasks), pager, white coats, scrubs, educational expenses, etc. Even pens add up over a year. I deducted my iPhone 3G's purchase price last year, as well as a portion of my cell bill since I use it for drug reference (ePocrates) and work-related phone calls. This year I'm deducting my 3GS.

In general, independent contractors make more and can deduct more. It really boils down to what kind of benefits you're getting at the employer job. If you're getting a huge pension, lots of benefits, etc., then you may come out ahead compensation wise than if you took the IC job.