Business income/deductions

[jillmol54]

Last year I received a 1099 for my coaching income.  This year I received a W2 for coaching.  Can I still deduct my car and mileage?  My deduction for mileage is significantly higher this year because my income for coaching is through a W2, not 1099.

[DawnC · Accepted solution]

Unfortunately no.  When you receive a W-2, you are an employee.  1099s are given to those that are independent contractors or self-employed taxpayers that file Schedule C. 

Job-related expenses for employees are no longer deductible on most people’s federal return in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017. However, the deduction for job-related expenses is still available to people who work in one of these specific professions or situations:

• Armed Forces reservist
• Qualified performing artist
• Fee-basis state or local government official
• You're disabled and have impairment-related expenses

Additionally, job-related expenses may be deductible in your state.  Enter your expenses and we’ll figure out if you can deduct them.  Expenses that qualify for this deduction are those the IRS considers "ordinary and necessary" for work, like uniforms, tools, union dues, licenses, and travel between job sites.