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w2 contractor tax deductions

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I am looking at taking...
I am looking at taking a job with a contract agency as a w2 contractor for a 8 month contract. What are the tax deductions that I can take? I have to commute 16 miles each way to the job site plus I have to pay for medical insurance, even though they offer it, it is $1500 a month vs. I can buy it individually for about $600 a month.
Submitted: 7 years ago.Category: Tax
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Answered in 19 minutes by:
10/2/2010
Tax Professional: Jacy, Certified Public Accountant (CPA) replied 7 years ago
Jacy
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience: Nine years individual income tax preparation and consulting
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Hello,

 

When you are a W-2 employee, permanent or contract, commuting miles are not deductible. If you drive to other locations as part of the job, it is financially better to get a mileage reimbursement from your employer. Otherwise, expenses related to this job are deducted as Miscellaneous itemized deductions, subject to the 2% floor. This means you can't deduct any expenses unless you itemize AND the total expense exceeds 2% of your gross income.

 

If you enroll in the company medical plan, you save taxes on the premiums. However, the premiums are so high that it doesn't make sense. If you buy an individual policy, you may include this expense as a medical deduction if you itemize. Keep in mind that medical and dental expenses are only deductible if they exceed 7.5% of you gross income.

 

I hope this has been helpful to you.

 

If I have adequately answered your question, please click the GREEN ACCEPT button.

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Jacy
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience: Nine years individual income tax preparation and consulting
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