TAX YEAR 2018 or earlier I am the sole "employee" of an Incorporated Business that I own - and as such I get a W-2 from a payroll service rather than a 1099. How do I deduct expenses?

plmcknight — Thu, 13 Apr 2023 21:25:32 GMT

You can deduct expenses related to W-2 income: If you...

IreneS — Sat, 01 Jun 2019 06:50:57 GMT

You can deduct expenses related to W-2 income:

If you itemize your deductions; AND
All of your unreimbursed employee business expenses and other miscellaneous itemized deductions added together are more than 2% of your AGI. [Only the amount over 2% AGI is deductible.]

To include these expenses in your return, please follow these steps:

Click on Federal Taxes [Personal in TurboTax Self-Employed] > Deductions & Credits.
Scroll down to the Employment Expenses section and click on the Start/Revisit box next to Job Expenses for W-2 Income. [See Screenshot #1, below.]
On the Employment Expenses Related to a W-2 screen mark the Yes button and click Continue. [Screenshot #2]
On the next screen, Did you have any of these expenses in 2016? mark the Yes button and click Continue. [Screenshot #3]
Continue through the screens entering information about your expenses.