Can W-2 Employees take business tax deductions?

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4 Responses to “Can W-2 Employees take business tax deductions?”

  1. carole says:

    You can not take business deductions on W-2 income (like toll money or anything like that) but if you also have a business (like making cat toys, say) and you have more deductible expenses than you can take from your business incoem, I think you can still take them (in a way taking them out of your W-2 income) if you seem what I am saying.

    You made $10,000 last year – 9,000 in W-2, 1,000 in your new startup business (in which you incurred a loss because it cost you 5,000 to make the product). I think that you can still claim that 5,000 as a deductible busines expense, which will reduce your total taxable income to 5,000 in that year.

    I hope this helps. Peace!

  2. tonalc1 says:

    No, except for something that’s required on the job that they make you buy, i.e. a uniform.

  3. thrasher415 says:

    You can itemize those deductions, but only if they total more than the standard deduction on your 1040. Such as Mileage or supplies, etc.

  4. normal1 says:

    there are a number of business expenses an employee can deduct under the right circumstances – tools, clothing, transportation, travel, etc.

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