{"id":32425,"date":"2017-12-22T14:50:34","date_gmt":"2017-12-22T20:50:34","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?post_type=newsroom&p=32425"},"modified":"2023-03-01T13:01:11","modified_gmt":"2023-03-01T19:01:11","slug":"heres-santa-theres-santa-everywhere-theres-santa-whats-real-deal-santas-taxes","status":"publish","type":"newsroom","link":"https:\/\/www.hrblock.com\/tax-center\/newsroom\/income\/other-income\/heres-santa-theres-santa-everywhere-theres-santa-whats-real-deal-santas-taxes\/","title":{"rendered":"Here\u2019s a Santa, there\u2019s a Santa, everywhere there\u2019s a Santa \u2013 but, what\u2019s the real deal on Santa\u2019s taxes"},"content":{"rendered":"

Santa Claus exists \u2013 of course \u2013 and even he must pay taxes. Well, more specifically, the Santa Claus \u201crepresentatives\u201d paid to appear in shopping malls and at holiday parties are taxpayers. And, with taxes can come tax benefits that can lower tax liability and increase a tax refund.<\/p>\n

For his holiday season job at the mall, Santa probably gets a W-2 that reports his income. If Santa makes a variety of personal appearances at holiday parties and other events, he might get a 1099 if he works for a company that manages his appearances and sometimes he might just get a check. If Santa is given a 1099 or a check, his work as Santa is probably done as a freelancer or contractor, and some of his supplies might be tax-deductible.<\/p>\n

For tax purposes, potentially eligible business expenses are defined as ordinary and necessary costs of doing business. If not reimbursable by the employer, for tax year 2017 these expenses can be claimed by employees<\/a> as miscellaneous itemized deductions<\/a>, which are deductible to the extent they exceed 2 percent of adjusted gross income. But, business owners and taxpayers who work as freelancers and contractors<\/a> are not limited on how much of these eligible expenses they can deduct.<\/p>\n

To transform themselves into Santa, these humans\/taxpayers need to look the part (think suit and beard) and know how to \u201cho ho ho!\u201d (think training). But, there are some specific rules about which expenses can be potential tax deductions, and that information also can help non-Santas\/other people who buy things for their jobs. The following questions and answers can help all taxpayers determine if what they buy for work is an eligible tax deduction<\/a>. So, which of these expenses could Santa deduct?<\/p>\n