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W2 deductions possible

I have a W2 income job but must pay for housing and car even though I have a primary residence more than 2 hours away. Can I deduct this as a business expense.

 

In the same tax year, I had another job that pays a 1099 and I was able to take these deductions. 

 

In both cases the housing for the jobs was away from my primary housing.

 

Thank you

 

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3 Replies

W2 deductions possible

Sorry---W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

 

 

And....you have not been very specific about what you are trying to deduct---there are business expenses you can put on a Schedule C for the self-employment, but you cannot double dip and try to use those same expenses for a W-2 job.   Provide some details about the expenses you are using.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

W2 deductions possible

For W2 job it would be a temporary apartment less than 12 months while I am on the job.  I plan to quit after 3 months although it was a permanent government job. I rented a car and place to stay 2 hours away from my house to do the job but it is not feasible or cost effective.

The second job is a 1099 and I did that job out of state for the beginning of the year. I was paid a 1099 and got a house and car rented out so I assume I can deduct those.

 

I am trying to do the same thing for the W2 income from the government job that I did for the 1099 income job. It would seem that getting a W2 means you cannot be reimbursed for temporary housing if the agency that hired you will not cover that cost or the cost of a rental car. 

 

My primary business is in the state where I live in my home which is neither of the apartments that I am renting.

 

Thank you

 

DaveF1006
Expert Alumni

W2 deductions possible

Yes, you can deduct these expenses as a 1099 contractor but not as an employee.  In 2018, The Tax Cuts and Jobs Act ("TCJA") changed this provision so that W2 employee expenses are no longer deductible. Please refer to this IRS link for further information.

 

If you live in the states of Alabama, Arkansas, California, Hawaii, Minnesota, New York and Pennsylvania, you can claim employee business expenses on the state level but not on the federal level. Just fill in the W2 employee expenses in the federal interview section of the program and then if your home state is one of the states listed above, it will automatically populate to that state's return.

 

 

 

 

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