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New Member
posted Jun 7, 2019 5:15:05 PM

What is a "fee-basis state or local government official"? I do consulting for the state government but get paid through an organization that is paid by the state.

My 1099-MIsc is from the organization contracted by the state but my consulting work is with a state agency.  Largely I work at the state agency office.  Can I be considered a fee-basis state official?  I see my deductions for travel and home office would only count this year if I say I'm a state official.  I have taken these deductions in the past but with the new cap on deductions, they would not help me unless I say I'm a state govt official.

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8 Replies
Level 15
Jun 7, 2019 5:15:06 PM

You are not a fee-basis state official. A fee-basis government official is someone who is compensated by collecting fees for his or her services, rather than being paid a salary or wages.

Alumni
Jun 7, 2019 5:15:08 PM

Example:  Health Agent or often in smaller municipalities the Building and Electrical Inspectors.

Alumni
Jun 7, 2019 5:15:11 PM

If you are not an employee of the state or local government, but instead employed by a consulting company, the discussion of "fee basis" and the rest do not apply to you.

New Member
Aug 29, 2019 11:32:25 AM

If you are paid as a contractor, i.e. 1099-Misc, then your expenses can be deducted.

Level 1
Mar 22, 2021 7:38:25 AM

As a self-employed person, use Form 8829 and Schedule C (not Schedule A for "employees") to deduct home office expenses.

New Member
Sep 14, 2023 9:04:56 AM

Can law enforcement or professional firefighters use this option for unreimbursed expenses such as required supplies (boots/pants/etc) purchased for the job, but not paid by the department?  Thanks.

Level 15
Sep 14, 2023 9:22:45 AM

@vikki413 --

 

If you're a W-2 employee, your unreimbursed business expenses are not deductible on your federal tax return.  Some states may allow that deduction on your state tax return.  I believe those states are Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania. 

https://blog.mgallp.com/can-you-deduct-unreimbursed-employee-expenses-these-states-might-let-you

New Member
Sep 14, 2023 9:28:50 AM

That is what I thought, but I wanted to double check....  Thanks.