Commission only W2

Forum|Forum|3 years ago
September 1, 2022
3 replies
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I am considered a W2 employee but I am commission only. No Salary. No reimbursement. Am I allowed to deduct my expenses? What if my ex itemized when we filed married filing separately?

ItsDeductible Online

Critter-3

Level 15

A W-2 employee cannot deduct any business expenses on the tax return (from 2018 thru 2025) and if you file separately you and the other spouse must both use the standard deduction or both use the itemized deduction ... so if one party itemizes the other must also itemize even if they have nothing to itemize.

Mike9241

Level 15

if you are not married on the last day of the tax year your only options are filing single or head of household. in neither case does it matter what the ex did regarding itemized or standard deduction

WallysWorldAuthor

Level 2

we divorced march the following year so we were still married(separated) during that tax year.

Opus 17

Level 15

@WallysWorld wrote:

we divorced march the following year so we were still married(separated) during that tax year.

If your Ex filed MFS while you were married but separated and itemized their deductions, that forces you also itemize your deductions if you file MFS, even if you don't have any deductions to include. (But, you do not have to itemize if you or your ex filed as head of household.)

You should have at least some deductions to include, like payment or withholding of state income taxes, maybe a mortgage, maybe gifts to charity. However, work related expenses are not an allowable deduction. The program still allows you to enter them because you may be able to deduct them in some states, so there's no harm in listing them. You just won't get a benefit on your federal return.

Carl

Level 11

I am considered a W2 employee but I am commission only.

Not sure, but I think it matters if the "statutory employee" box is checked on the W-2. Can someone more in the know than me, comment on that? Can one claim expenses on the SCH C if that box is checked?