If I'm 1099, can I choose to just take the standard deduction or do I have to itemize my business deductions?

[jlpell88]

I'm a loan officer and my new company has us as 1099, with my 1st year there being a covid year my deductions are likely less than the standard deduction. Am I able to just take the standard deduction? I've seen and read contradicting information on this.

Appreciate the help!

[Hal_Al]

You may do both:  use the standard deduction and deduct your business expenses.

That is, you do NOT itemized business deductions on Schedule A (personal itemized deductions). Business expenses are deducted  (and business income reported) on Schedules C.  This is in addition to using the standard deduction (or using Schedule A for personal itemized deductions).

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-NEC); The IRS considers anything on a form 1099-NEC to be self employment income. Enter the 1099 income, at Other Common income / income from a 1099-NEC . TurboTax (TT) will complete Schedule C  for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $432. These types of payments are frequently done this way. Your "employer" is not the only one.

[AnnetteB6]

There is not a standard deduction with respect to business expenses reported on Schedule C.  You either have business expenses to claim or you don't.  There is not a minimum amount that you have to reach before you can claim them, you just report any business expenses that you incurred and they are deducted against your Schedule C self-employment income. 

The standard deduction or itemized deduction is not specifically related to your business expenses.  That is a deduction against all of the income reported on your return.  The standard deduction is based on your filing status.  Itemized deductions include mortgage interest, medical expenses, state and local taxes, charitable contributions, etc.  Once your itemized deductions are greater than your standard deduction, then you can use itemized deductions to further reduce your taxable income.

@jlpell88