When you work, a company either classifies you as an employee or independent contractor/business. If they've given you a W-2, they've classified you as an employee. I'd recommend discussing it with the company. There is a form to file to dispute the 'worker classification' with the IRS, but typically companies break the "rules" in the other direction (classifying you with a 1099) because it's more expensive for them to treat you as an employee. Learn more on this form HERE.
You can still enter your 'Unreimbursed job expenses' but they aren't deducted as advantageously as when you're self-employed. Instead these are limited by 2% of your Adjusted Gross Income (AGI- a subtotal on your tax return) and part of the itemized deductions, so you must itemize in order to get any benefit.
To enter employee job expenses, follow the steps below.
- Click 'Take me to my return'
- Select the 'Federal Taxes' tab and then click the 'Deductions & Credits' tab below it
- Scroll down to the 'Employee Expenses' section and click the blue hyperlink 'Show more'
- Click 'Start' or 'Revisit' next to 'Job Expenses for W-2'
- Next you'll be asked about your 'occupation'. This section will ask about all job expenses. [Note: if you already updated this section or some of the questions from this section, you may be on a summary screen and need to click 'Edit' next to the applicable 'Occupation']
