Does the new Tax Reform, that suspends work-related expenses as itemized deductions, apply to those that are self-employed, sole proprietors/independent contractors?

[jjeannie]

I’m reading a lot of articles on the new Tax Reform but I am getting a little confused (see attached image). I am self-employed and considered a sole proprietor or an independent contractor. I’m a dancer/entertainer and all of my income is cash. 

Last year, I itemized my deductions and planned to do the same this year. I’ve read that work-related expenses can no longer be itemized deductions. Does this only apply to employees, people that file with W2s? 

[MichaelMc · Accepted solution]

No, what you have been reading about the suspension (elimination) of work-related miscellaneous itemized deductions does not apply to self-employed persons filing Schedule C (Form 1040).

The Tax Cuts and Jobs Act of 2017 made significant changes in many areas of tax law. Among the most discussed in the media has been the suspension, from 2018 through 2025, of the itemized deduction for miscellaneous itemized deductions subject to the 2% limit. This category included virtually all unreimbursed work-related expenses (travel, tools and supplies, uniforms, etc.) for W-2 wage earners. Also eliminated are tax return preparation fees, investment advisory fees, union dues, home office expenses, etc.

Almost all of the work-related expenses list above are still deductible on Schedule C for self-employed persons, be they sole proprietors or independent contractors.