Car Expense

[eddie2ash]

My wife's employer moved her from 1099 to employee.  As such they are taking her submitted expenses from her commission income (reducing it).  They are not utilizing the full value of the mileage rate therefore only partially covering her expense.  Can we deduct the difference on our taxes for 2021?

[xmasbaby0]

Sorry--no. 

W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

[eddie2ash]

Thanks.  I suspect we can't set up a depreciation schedule either.

[xmasbaby0]

Correct.