1099-NEC

[Hitesh1]

Hello,

For 2020 taxes I did receive 1099-NEC (for self employment/contractor) on top of W2 for my full time job.  Can I still claim expenses under 1099-NEC since I used a dedicated space in my apartment to conduct all that work? However, the expenses (apt rent, utilities etc used just for the dedicated space)  are more than what I made per 1099NEC.

Please advice. Thanks!

[ThomasM125]

You can deduct the home office expenses from your subcontract income even though you also had a salary job.

[Hitesh1]

Hi @ThomasM125 ,

Thanks for your response. Just to clarify even if the expenses (apt rent, utilities etc used just for the dedicated space)  are more than what I made per 1099NEC, I will still be able to deduct them? 

[VolvoGirl]

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.