W2 employee on 100% commission - Can I deduct mileage for client estimate visits?

But isn't there some exception for commissioned salespeople? I thought I read somewhere that if you're paid entirely on commission, you might still be able to deduct some business expenses even if you're a W-2 employee?

There's a common misconception about this, but no special exception exists specifically for commissioned salespeople who are W-2 employees. Prior to 2018, all employees could deduct unreimbursed business expenses as miscellaneous itemized deductions (subject to the 2% AGI floor), but that deduction was suspended through 2025. Some states do still allow these deductions on state tax returns, so you should check your state's tax rules. You might be getting confused with self-employed individuals (1099 workers), who can still deduct business mileage on Schedule C.

How does it handle situations where you work in multiple states? I travel across state lines for work and always get confused about what I can deduct where.

Does the system actually give you specific language to use when negotiating with your employer? That would be super helpful because I have no idea how to even start that conversation.

It definitely handles multi-state situations - you can input all your work locations and it shows you which states still allow these deductions on state returns. I was actually able to claim some expenses on my state return even though I couldn't on federal. Yes, it provides specific talking points and even email templates you can use with your employer. I used one of them to start the conversation with my manager about setting up an accountable plan, and it was much easier than trying to figure out the right wording myself.

Wait, how does this actually work? Do you have to give them personal information? Sounds kinda sketchy to be honest.

Yeah right. Nobody can get through to the IRS faster than anyone else. They're probably just trying to collect your info or something. Have you actually tried this yourself or are you just shilling for them?

They don't need any personal tax information - you just enter your phone number and what department you need to reach. When they get an IRS agent on the line, they connect the call to your phone. You don't discuss any tax details with the service, only directly with the IRS agent. I understand the skepticism - I felt the same way! But yes, I actually used it myself after spending a total of 5+ hours on hold across multiple days. They have some kind of system that navigates the IRS phone tree and stays on hold so you don't have to. Was a lifesaver during tax season when I needed specific answers about my situation.

I actually asked about that last year, but my company said they can't do it because of how they control my schedule and work processes. Something about the IRS having specific tests for who qualifies as an independent contractor vs. employee. They also mentioned it would mean losing my benefits like health insurance and 401k matching.

That makes sense. The classification rules are pretty strict and the IRS looks at factors like behavioral control, financial control, and relationship factors. If the company controls when and how you work, provides tools/equipment, offers benefits, etc., they're probably correct that you should be classified as an employee. Be careful pushing for 1099 status just for tax deductions - if misclassified, it could create bigger headaches down the road for both you and the employer. The accountable plan route others suggested is probably your best option at this point.

This is what I did too. My company was resistant to dealing with expense reports, so they just increased my commission structure. Just make sure you do the math first - calculate what your annual mileage reimbursement would actually be (miles × IRS rate) and make sure the commission increase at least covers that amount.