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Returning Member
posted Jun 28, 2023 11:09:35 AM

Job change from salary to contractual

My salaried job turned into an hourly/contractual job in the middle of this calendar year --
 
  • How do I claim my health expenses which had initially been pretax but are now post-tax? (I'm currently using COBRA for my family at roughly 2k a month) 
  • Can I now claim the office space that I use to do my work as a deduction (I also use the office for my role as a P/T adjunct professor for an online class)? Can I claim the office space for the entire year, even if I was using it as a salaried employee for the first five month?
  • Are there other common deductions that I should be considering for this transition?

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1 Replies
Employee Tax Expert
Jun 28, 2023 11:21:48 AM

Hello,

Great question!!!

https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income-and-deductions/L3Unchx1x

I love this link because it might explain more about self employment income and expenses.  If you are contractual, then it sounds like you are now self employed.  When you enter your tax documents in 2023, you will have a W2 for the salaried income and a 1099 NEC for the self employment income. 

This link will show you have to enter the self employment income.  https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/report-income-self-employment/L5wADi3xQ_US_en_US  In that section you will then choose the expenses you had for 2023.  

This link will show you how to enter the expenses.  https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US

Business expenses while an employee (salaried) are usually not deductible. 

When you start your taxes for 2023, click on Live Help and we will have you share your Turbo Tax Live Screen.  This way we can help you find all the the places you will need to go if the links are not helpful.