Question

Business expenses against a w2 company for independent contractor.

Forum|Forum|4 years ago
February 8, 2022
2 replies
0 views

I have been an independent contractor for many years. All but one of the companies I have worked for send me a 1099. The one company that sends me a W2, for some reason, is the only company that had work for us last year. How do I enter milage, meals and hotels? At the moment I am looking at paying $5,500 in taxes!! HELP!

Z

ZoltanB45

W-2 employees have not been able to deduct non-reimbursed employee expenses on their tax return since 2018. Did you give the employer a w-9 or

w-4? If you gave them a w-9 form they should send you a 1099.

M

Mike9241

since they issued you a w-2, they're treating you as an employee. no employee expenses like mileage are deductible for the years 2018-2025

your options

see if they'll issue a 1099 and cancel the w-2

or

if you think you;ve been misclassified as an employee when you were an independent contractor file form SS-8 with thee iRS and file your return as an independent contractor

warning

If the IRS determines that you are an employee, you are
responsible for filing an amended return for any corrections
related to this decision. A determination that a worker is an
employee does not necessarily reduce any current or prior tax
liability. For more information, call 1-800-829-1040.

instructions

https://www.irs.gov/pub/irs-pdf/iss8.pdf

form

https://www.irs.gov/pub/irs-pdf/fss8.pdf

B

bobandiaAuthor

Hi, Mike! Thanks for replying. We have been independent contractors for many years. This company is the only one that changed over from the 1099 to the W2 a few years back. Last year was dismal for work as all of our work went south except for this one company. I am guessing that I just didn't notice the impact because we had so much work that was 1099. Looking at a very large tax bill of about $5,500 at the moment. Any ideas how I can get that lower? This company is a small family company that we have worked for for many years. Most of their employees are family so perhaps that is better for them. They do have many independent contractors all over the USA, but they are also caught up in the W-2 problem.

Bob

macuser_22

Employee

If you are now a W-2 employee then you are not an independent contractor. You would no longer have to pay the SE tax since the employer must pay half the social security tax instead of you. However, it you have work related expenses you can no longer deduct them.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**