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Writing off CME costs on Taxes if you are mostly W2 with a 1099 side gig

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  • Writing off CME costs on Taxes if you are mostly W2 with a 1099 side gig

    Tax season is here

    I've got a deductions question:

    I was told by a CPA at a conference that I could deduct a portion of my CME travel/lodging/meals expenses to my 1099 and the other portion to my W-2 (or at least that's how I understood him and I want to clarify).

    I received 91% of my income from my employee W-2 job and 9% of my income from moonlighting 1099 gigs. Does this mean I can deduct 91% of my CME expenses under personal unreimbursed employer expenses and 9% under business expenses?

    Same question goes for liability insurance and other non-employer paid expenses, can I deduct 91% of it under personal and 9% under business expenses?

     

    Please let me know if I'm understanding this correctly?

    Thank you!

     

  • #2
    Yes, but you have some wiggle room and a little subjectivity is applicable in this situation. You are allowed to deduct the amount that is ordinary and necessary for your income-producing activities which applies both to your W2 and to your IC work. Obviously, the more you can allocate to IC, the better off you will be. However, one of the most fundamental rules that IRS agents abide by (other than the rule of law) is that pigs get fat and hogs get slaughtered.
    Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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