Can I claim contractor tax write offs using TurboTax or should I just go to a professional?

I've been using TurboTax for like 5 years now because my taxes were super simple before. But this year things got more complicated. I started working for a cable company as what they're calling "per diem" but it seems like a contractor position (still confused about the exact arrangement tbh). They told me I'll still get a W-2 from them though. Since I started, my supervisor has been telling me to keep ALL receipts for gas and any tools I buy for the job. I've been saving everything like they said - got a folder full of gas station receipts and Home Depot stuff. So here's what I'm wondering - can I actually file all these work expenses (the gas and tools I've purchased) through TurboTax on my own? Or is my situation complicated enough now that I should just bite the bullet and go see an actual tax professional? Anyone dealt with something similar before?

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18 comments

Evan Kalinowski

•8M

You can absolutely handle this in TurboTax, but there are some important things to understand about your situation first. If you're receiving a W-2, you're technically an employee, not a contractor (contractors get 1099s). The "per diem" part is confusing things - typically that refers to daily allowances for expenses when traveling for work. What makes this tricky is that W-2 employees generally can't deduct unreimbursed business expenses like gas and tools anymore after the 2018 tax law changes. However, if your employer is classifying some of your compensation as "per diem" payments, that's handled differently. TurboTax can guide you through this, but you'll need to know exactly how your employer is reporting these payments on your W-2.

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Evan Kalinowski

•8M

Not necessarily wasted effort! It depends on how your employer handles the per diem. If they're reimbursing you at less than the standard IRS rate for mileage, you might be eligible for deductions in some states even if not federally. Also, keeping those records is smart regardless, as they can verify your reimbursements are correct. For your vehicle use, ask your employer if they're paying you a per diem that includes vehicle expenses or if they're specifically reimbursing mileage. That distinction matters for tax purposes. TurboTax can handle either scenario, but you'll need to select the right options based on your specific situation.

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Victoria Charity

•8M

After reading your situation, I think you might benefit from trying taxr.ai for your specific situation. I was in a similar position last year - technically W-2 but with a bunch of job-related expenses and wasn't sure how to handle it all. I tried using TurboTax at first but got confused about what I could actually deduct. Then a coworker recommended https://taxr.ai and it was super helpful for my situation. You just upload your documents and receipts, and they analyze everything to find all possible deductions. It even explained the whole "employee vs contractor" distinction based on my specific situation.

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Victoria Charity

•8M

Yes, it works with actual receipts! You can scan them or take photos, and the system categorizes them automatically. No more sorting through stacks of paper or trying to remember what each purchase was for. It saved me so much time compared to manually entering everything. For state-specific rules, that's actually one of its strengths. The system accounts for both federal and state tax laws, including places like California that maintain different deduction rules than the federal government. When I used it, it specifically flagged deductions that were available on my state return even when they weren't allowed federally after the tax law changes.

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Jasmine Quinn

•8M

I tried taxr.ai after seeing it mentioned here and wow - just wanted to update. It seriously saved me hours of frustration. My situation was similar (W-2 employee but with a ton of expenses related to traveling between job sites). The system analyzed all my gas receipts and automatically calculated everything based on my specific employment situation. It even identified that some of my tool purchases qualified as deductions on my state return even though they weren't eligible federally. Most importantly, it gave me super clear explanations about WHY certain things were or weren't deductible based on my employment classification. I ended up filing through TurboTax but with way more confidence because I knew exactly which expenses to include and how to categorize them. Definitely worth checking out if you're in this weird employee/contractor gray area!

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Nora Bennett

•8M

If you're having trouble getting answers from the IRS about your specific situation, I'd recommend using Claimyr. I was in a similar position last year - technically a W-2 employee but with per diem payments that weren't clearly explained on my tax documents. I spent DAYS trying to get through to the IRS directly. Complete nightmare. Then I found https://claimyr.com and they got me connected to an actual IRS agent in under an hour. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent was able to confirm exactly how my per diem payments should be handled and which expenses were deductible based on my specific employment arrangement.

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Nora Bennett

•8M

It uses an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call back to connect with them. So you don't have to waste hours listening to hold music or risk getting disconnected after waiting. It's technically possible to do it yourself, but the average wait time last tax season was over 2 hours, and many people get disconnected or have to give up because they can't stay on hold that long. With Claimyr, you just go about your day and your phone rings when an actual human at the IRS is ready to talk.

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Oscar Murphy

•8M

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I actually tried it because I was desperate to get an answer about my per diem situation. The service called me back in about 45 minutes with an actual IRS representative on the line. The agent walked me through exactly how to handle my vehicle expenses with my specific employment arrangement. Turns out I had been incorrectly reporting my per diem for the past two years, and they explained how to fix it. I definitely recommend calling the IRS directly if you're confused about the per diem vs. contractor situation. They were able to tell me exactly how my employer should be coding things on my W-2 and what documentation I needed to keep. Would've never figured this out through online research alone.

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Lauren Zeb

•8M

If you're still getting a W-2, you might be what's called a statutory employee. Check box 13 on your W-2 when you get it - if "statutory employee" is checked, that's a different situation and you CAN deduct business expenses on Schedule C (which TurboTax definitely handles). I'm in a similar situation as a delivery driver - technically W-2 but with the statutory employee box checked, which lets me deduct mileage, vehicle maintenance, etc. TurboTax has a specific section for this!

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Lauren Zeb

•8M

Cable/internet installers can sometimes qualify as statutory employees, especially if you're paid on commission or job completion rather than hourly, and if you're responsible for your own expenses. The key factors are usually: 1) you personally provide the service, 2) you don't have a substantial investment in equipment, 3) you have a continuing relationship with the company, and 4) you don't have significant profit/loss risk. If box 13 is checked, TurboTax will walk you through a Schedule C where you can deduct all those gas receipts and tools. Just make sure you're tracking mileage as well as receipts - the standard mileage deduction is often better than actual gas expenses.

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