If you receive a 1099 MISC from your employer, your expenses will be included, along with your income, on Schedule C. In Turbo Tax you will enter your expenses in the Business section under the Business Income and Expenses tab.
If you receive a W-2 from your employer, your expenses are considered Employee Expenses. In Turbo Tax, you would enter your expenses in the Deductions and Credits section under Job Related Expenses in the Employment Expenses section.
Job Related Expenses are considered miscellaneous itemized deductions. The total of these expenses must be greater than 2% of your adjusted gross income to be included with your itemized deductions. Itemized deductions are taken only if they are more than the standard deduction for your tax filing status.
If you don’t receive either a 1099 MISC or a W-2, you will include income and expenses on Schedule C in your tax return. Your income will be reported as General Income instead of Income from a 1099-MISC.
