Employee Expense - Form 2106 or Schedule C
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If you receive a Form W-2 Wage and Tax Statement as a Qualified Performing Artist, Fee-Based Government Official, or National Guard/Reserve member at the end of the year, work-related expenses that are deducted from your paychecks (and are actual expenses to you and not reimbursed by your employer or advanced to you by your employer) can be deducted. All other employee expense deductions have been discontinued with the passage of tax reform.

To enter unreimbursed employee expenses in your TaxAct® return:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Adjustments in the Federal Quick Q&A Topics menu to expand, then click National Guard/Reserve member from Form 2106 or Qualified performing Artist or Fee-Based Government Official from Form 2106.
  3. Click + Add Form 2106 to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information, which will appear on Schedule A (Form 1040) Itemized Deductions.

TaxAct will use the higher of your itemized deductions or the standard deduction for your filing status in order to maximize the tax benefit to you. See Standard Deduction for more information.

If you receive a Form 1099-MISC Miscellaneous Income as a self-employed individual at the end of the year, you would complete a Schedule C Profit or Loss From Business to report both your income and expenses.

To enter amounts for business income or loss from a sole proprietorship:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Business income or loss from a sole proprietorship.
  3. Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.