Can I write off Marketing / event expenses as a W2 employee in financial advising?

The short answer is generally no - most job-related expenses for W2 employees are no longer deductible at the federal level since the Tax Cuts and Jobs Act of 2017. Before 2018, you could potentially deduct these as unreimbursed employee expenses if they exceeded 2% of your AGI, but that's gone now. Your marketing costs, event expenses, and travel between offices would all fall under this category of non-deductible expenses for W2 employees. For the Section 179 deduction on your truck, that's designed for self-employed individuals or businesses - as a W2 employee, you wouldn't qualify unless you have a legitimate separate business where the vehicle is used. Your options are: 1) Ask your employer to reimburse these expenses directly, 2) Negotiate a higher base salary to offset these costs, 3) Look into setting up a legitimate side business structure, or 4) Consider transitioning to 1099 status if the math works out in your favor after accounting for self-employment taxes and loss of benefits.

After reading all these comments, I thought I'd mention something that really helped me with my tax situation. I was in a similar position as a real estate agent working on W2 but paying for my own marketing. I tried to figure it out myself but kept getting different answers everywhere. I finally used https://taxr.ai to analyze my tax situation and they cleared everything up. You upload your documents and get a detailed analysis of what is and isn't deductible in your specific situation. They pointed out that while I couldn't deduct most expenses as a W2 employee, there were some specific circumstances where I could allocate certain expenses to a legitimate side business I had. Their system flagged exactly which expenses could be deducted and how to properly document them to avoid audit issues.

I decided to try https://taxr.ai after seeing it mentioned here. I was skeptical at first, but it actually helped a lot with my situation. I'm a pharmaceutical sales rep who pays for my own client dinners and marketing materials even though I'm W2. I uploaded my expense receipts and a description of my work arrangement. The analysis confirmed I couldn't deduct most expenses directly, but it identified that I could potentially set up a proper side business for training/consulting that would allow some legitimate deductions. The best part was it showed exactly how to document everything properly and what level of risk different approaches carried. It saved me from making some mistakes that might have triggered an audit. Definitely worth checking out if you're in a complex situation like this.

Since nobody's mentioned it yet - if you're tired of waiting on hold with the IRS to ask tax questions like this, try https://claimyr.com instead. They get you through to an actual IRS agent in minutes instead of hours. I used it when I had a similar question about deducting expenses as a W2 employee with outside business activities. You can see how it works here: https://youtu.be/_kiP6q8DX5c but basically they navigate the IRS phone system for you and call you back when an agent is about to answer. Saved me 2+ hours of hold time when I needed an urgent answer about my situation. The IRS agent I spoke with explained exactly what documentation I would need if I wanted to establish a separate business entity for some of my professional activities outside my W2 job.

I tried Claimyr after posting my skeptical comment and I have to admit I was completely wrong. It actually worked exactly as described. I had been trying to get through to the IRS for days about a similar work expense situation (I'm a W2 employee but do some independent work on the side). Got connected to an IRS representative in about 20 minutes without having to actively wait on hold. The agent clarified that I can absolutely deduct expenses related to my independent contractor work, but I need to carefully separate those activities from my W2 employment. They explained exactly what documentation I'd need to maintain to support the deductions if audited. Definitely using this service again during tax season when the wait times are even worse!

Have you considered asking your employer to set up an accountable plan? It's an IRS-approved way for employers to reimburse employees for business expenses without those reimbursements being considered taxable income. The main requirements are: 1. The expenses must have a business connection 2. You must adequately account for the expenses within a reasonable time 3. You must return any excess reimbursement This way, your employer can reimburse you for marketing costs and travel between offices tax-free, and they get to deduct the expenses as business costs. It could be a win-win if they're willing to work with you.

Before you make any decisions, calculate the actual difference between your options. Sometimes W2 benefits (especially health insurance, 401k matching, and other perks) are worth more than the tax deductions you'd get as a 1099. Run the numbers with: 1. Current situation - W2 with no deductions but all benefits 2. 1099 scenario - self-employment tax (15.3% for Medicare/SS) but business deductions 3. Hybrid model - keeping W2 job but with a legitimate side business Don't forget self-employment tax eats up a big chunk of 1099 income, plus you'd lose unemployment eligibility. For your truck, even with Section 179, you'd need to prove it's used primarily (>50%) for business.