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EMPLOYER ISSUED A W2 BECAUSE OF TRAINING. OVER 99% OF THE W2 SHOULD HAVE BEEN A 1099. NO TAXES WERE TAKEN OUT. CAN I DEDUCT BUSINESS EXPENSES WITHOUT A 1099?

HOW DO I CALCULATE DEPRECIATION ON THE WORK TRUCK
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PatriciaV
Employee Tax Expert

EMPLOYER ISSUED A W2 BECAUSE OF TRAINING. OVER 99% OF THE W2 SHOULD HAVE BEEN A 1099. NO TAXES WERE TAKEN OUT. CAN I DEDUCT BUSINESS EXPENSES WITHOUT A 1099?

If you received Form W-2, the IRS considers you to be an employee. Your work-related expenses (including depreciation) are not deductible. Under the Tax Cuts and Jobs Act, the itemized deductions for job-related expenses subject to the 2% of AGI floor are suspended for expenses incurred after December 31, 2017 through 2025.

 

However, if you are self-employed, you may report both income and expenses on Schedule C. This would include auto and truck expenses/depreciation. See Where do I enter my self-employment business expenses?

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EMPLOYER ISSUED A W2 BECAUSE OF TRAINING. OVER 99% OF THE W2 SHOULD HAVE BEEN A 1099. NO TAXES WERE TAKEN OUT. CAN I DEDUCT BUSINESS EXPENSES WITHOUT A 1099?

There is a form you can file with the IRS to determine your proper classification. Filling out this form might give you an idea of how the IRS would decide.  

https://www.irs.gov/forms-pubs/about-form-ss-8 

Form SS-8

If it is still unclear whether a worker is an employee or an independent contractor, or if your business consistently hires the same types of workers to provide specific services, you may consider submitting a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Wi... with the IRS.

Form SS-8 may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status. Please note that it may take at least six months to receive a determination on your filing. For detailed guidance on completing this form, refer to the resource on Completing Form SS-8.

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