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Level 1
posted Feb 6, 2022 2:49:24 PM

Possible Work Expenses Deductions

My wife is a retired federal annuitant who now works as a contractor for the Feds. She isn't full time and either works at home or in the office.  Due to the distance between our home and her office (about 115 miles), working in the office results in out of pocket expenses such as hotels, mileage/gas, meals, etc.  She receives no benefits such as sick leave, health insurance, vacation leave, per diem, etc. So does this situation qualify the out of pocket costs to be legitimate work expense deductions?

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1 Best answer
Expert Alumni
Feb 6, 2022 3:02:59 PM

As a contractor, she is considered self-employed.  She should have received a 1099-NEC from reporting her income from her contract work.  This does mean that her out-of-pocket expenses are likely deductible from that income.

 

See How do I report income from self-employment? and What self-employed expenses can I deduct? for more details on income and expenses.

2 Replies
Expert Alumni
Feb 6, 2022 3:02:59 PM

As a contractor, she is considered self-employed.  She should have received a 1099-NEC from reporting her income from her contract work.  This does mean that her out-of-pocket expenses are likely deductible from that income.

 

See How do I report income from self-employment? and What self-employed expenses can I deduct? for more details on income and expenses.

Level 1
Feb 6, 2022 5:44:39 PM

Thanks for the prompt rersponse.