Breaking out Expenses in TurboTax Deluxe between W2 and 1099-NEC earnings

[sortofred]

Hello,

I retired on 4/30/25 from my company.  I also immediately became an agent for this same company on 5/1/25.  The type of expenses I incur didn't really changed when this occurred.  I have a home office and travel for work.  In any case, although this following question may seem a bit silly, I just want to make sure that I am entering my expenses correctly.  

Do I enter in the employment expenses section, under deductions & credits, just those portion of my expenses incurred while a w-2, while entering that portion of my expenses incurred while an agent in the Business Income and Expenses section under Wages & Income?  So, for example, for my home office, I should enter in the employment expenses section just for use until end of April and then enter home info for May on under the Schedule C? Same for car expenses, etc, correct?  And when asked when I started using things, such as my home office and car, in the Schedule C I would use 5/1/25 as that is when I became an agent (even though I have had them both in use for some time as a W-2 employee). 

Again, sorry for the basic nature of these questions. Thank you for your assistance.

[DavidD66]

You are correct about the allocation of expenses between your time as an employee and your time as a self-employed contractor.  Please note, those expenses during the time you were an employee are not deductible on your federal tax return.  Your state may allow a deduction for those expenses if you itemize.  Make sure your state allows a deduction, otherwise there is not point in entering the expenses for the period during which you were a W-2 employee.  

[sortofred]

Thank you!