Author Topic: Deduction of Unreimbursed Expenses as a Employee/Contractor for 2018  (Read 1054 times)


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I signed a contract with a labor broker (employment agency), which required me to be paid as an employee, W2,  (they will not pay via 1099); then, I was seconded to the agency's client in another state.  The agency paid their portion of FICA taxes, and also withheld same from me.  However, I had considerable expense relocating and establishing short term housing in another state, and also payed state taxes to that state.  My assignment came to an abrupt end after three months due to unexpected events.  I have a business license in the county of my home state (to provide engineering services) of which this employment pertains to.  I would like to deduct expenses associated with this job; however, with tax law changes in effect for 2018, I'm unsure.  My desire is to file as a business on Sch. C or E, declaring a loss against zero income, as it was reported on a W2, since this was a one-time job.  The expenses were 17% of income received.  Is this an acceptable way to file, or am I just stuck accepting the losses?
Thanks for a reply.


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Re: Deduction of Unreimbursed Expenses as a Employee/Contractor for 2018
« Reply #1 on: January 01, 2019, 03:37:39 PM »
You will receive a W-2 as an employee. Unreimbursed employee business expenses are no longer deductible. The best outcome would have been if the employer had an accountable plan.