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I will be starting a part-time independent contractor position for a few months in addition to my W2 job. I was wondering if subscriptions to academic newsletters and fees paid to attend an online webinar in my field are tax deductible?
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If they are applicable both to W2 and 1099 services, they are deductible prorata calculated by how much you use the purchase in W2 v 1099. We usually go with net taxable income from each source, as W2 expenses are no longer tax deductible. That will change if the business expense that is only marginally (or not) related to one or the other categories. Be sure to maintain your calculation in your tax workpapers.My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients -
this is an area of common misunderstanding for docs who think the second they have some IC income or get a 1099 that their entire professional lives become deductible.
fwiw as my IC:employee ratio of income is 1:10 i usually don't mess with this at all. the time and trouble to track it and enter into TT isn't worth it to me to save what is never more than a few hundred bucks. ymmv.Comment
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For what it's worth, I'd probably see this as a Section 162 issue. So, meaning you'd ask whether the seminar or subscription was an ordinary and necessary expense of the independent contractor trade or business. If it was, I'd deduct 100% on your Schedule C.
If it wasn't--if it was really connected to your W-2--I'd ask employer to pick up the cost.
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