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Can a independent contractor who has been issued a W2 Statement instead of a 1099 use Schedule C to deduct business expenses

Can a independent contractor who has been issued a W2 Statement instead of a 1099 use Schedule C to deduct business expenses: 

office at home 

car

 parking

 tolls & travel expenses incurred in earning his total income reported on Line 1 of his W2 statement?

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3 Replies

Can a independent contractor who has been issued a W2 Statement instead of a 1099 use Schedule C to deduct business expenses

You will not be able to claim these expenses as they are now Employee Business expenses and not deductible with the new tax law on the Federal return.

Depending on your state they might be deductible on the State return yet.

Can a independent contractor who has been issued a W2 Statement instead of a 1099 use Schedule C to deduct business expenses

The answer should be YES only if your Employer classify you as a "Statutory Employee" (Box 13 checked on the W2). If you are in doubt of your classification, please read up on it.

 

One helpful link is:

 https://www.taxslayer.com/blog/why-youre-a-statutory-employee/

If you are classified as such, use schedule C and follow the Q&A in TT Home & Business. Use the tax help or built in link on the pop ups Q&A to check who can use Schedule C. Your Income on the W2 will then get reported on SCH C to validate your Expenses.

 

Found this out after the fact and a lot of research.

IRS Support was no help and sorry to say, neither was anyone from TT Support.

 

What is this world coming to? We have Agents working from Home, do not know the Tax Code and I believe have no idea on filling out a tax form trying to help you with a special situation and all they can say, "it is in publication, so & so". You are basically on your own when it comes to your special situation.

 

Goodluck!

Hal_Al
Level 15

Can a independent contractor who has been issued a W2 Statement instead of a 1099 use Schedule C to deduct business expenses

 

 

If "Statutory Employee" is checked, on the W-2, TurboTax will automatically generate Schedule C.

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