Received W-2 for a second job in another state; can I deduct expenses?

Question

I have full time employment as a professor in Georgia, for which I receive a standard W-2. I also claim self-employment as an Author/Lecturer, because I sometimes receive 1099 income from these sources.

Last year, I taught for one month in Nebraska. They, too, sent me a W-2 form. Because it was away from my home, I want to deduct expenses for this second job using Schedule C, as I normally do with 1099 income; however, TurboTax will not import the second W-2 to Schedule C unless Box 13 claiming that I was a "statutory" employee in Nebraska, is checked. (It is not.)

How can I get it to do so, or is there another calculation method that will allow me to make these deductions?

Answer 1

Because they sent you a W2, you must report that income as wages not self employment income. If you can get them to issue the IRS a corrected W2 and issue you a 1099 then you can claim it as self employment income and deduct the expenses on Sch C.

You could use form 2106 for employee business expenses if they qualify for a temporary work location. (I don't think it does because they were 2 different employers. and you obviously didn't commute from your full time job in Georgia to a part time job in Nebraska)

NOTE: You might be liable for Nebraska State income tax on the money earned in that state. Georgia would want a piece of it also.

Answer 2

What can be deducted, and how, on income as an employee (W-2) is very different than deductions on 1099 income. The items that are deductible can be different, and on W-2 income you can only deduct what's called "unreimbursed employee business expenses" if you itemize, and even then you have to subtract 2% of your AGI from those expenses and can only deduct anything over that amount.

Sorry, but no, you can't just calculate it some other way and get to take it anyway.

Schedule C is for self-employment (1099) income, not for employee (W-2) income.

Answer 3

Just traveling to and from a job is normally not deductible. Sorry. If you use your car on the job, like delivering papers or as a farm vet, then it's a business expense. Or, if your job requires that you travel, then you can deduct some out-of-pocket expenses. But just going from your residence to your part time job, no. You'll need more reason than that. If you think you've got a case, I suggest you check with an income tax adviser.