Independent contractor receiving a W-2

I have worked as an Independent contractor for years. I have received a W-2 from one of the companies I have worked for. They changed from the 1099 a few years ago. During the past year they are the only one who I have worked for. Is there a way to use that income against my out of state expenses? They are out of state as well.

210

Level 7

Feb 5, 2022 7:01:47 PM

Unfortunately no. Employees with W-2 will not be able to deduct unreimbursed employee expenses on your federal tax return

Expert Alumni

Feb 5, 2022 8:51:16 PM

Possibly. If your out of state expenses are related to your W-2 income then you may be able to deduct employee business expenses on some state tax returns. Those expenses are not deductible for federal taxes.

You can enter those expenses in Deductions & Credits and if they are eligible for a state tax deduction, TurboTax will move them to your state return.

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Independent contractor receiving a W-2