Solved
my wife works remotely for a university in a different state than we reside. 100% work from home. They do not provide health care or other benefits (401k, etc) as part of her consulting. We received a W-2 for this income. I would like to claim this as a self-employed business with expenses, but not sure I can since we received a W-2 from the university. How should I account for home business expenses related to this transaction?
If she received a Form W-2, you can't reclassify it as self-employment income. Any business expenses would go on Form 2106 Employee Business Expenses. It flows to Schedule A Itemized Deductions.
- Click Federal Taxes
- Click Deductions & Credits
- Click View All Tax Breaks
- Click Employment Expenses and (Start or Edit)
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Please see the link below for more information and pay attention to the special rules for employees at the end of the article:
https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction
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