The 2106 Change: What Employees Need to Know About Deductions

Dr Friday Tax Tips - One Minute Moment
Dr. Friday Tax Tips
The 2106 Change: What Employees Need to Know About Deductions
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In this episode, Dr. Friday delves into the significant tax changes that took place in 2017, particularly the elimination of the 2106 form in 2018. She highlights a common misconception among W-2 employees about creating their own Schedule C’s to claim deductions. Dr. Friday emphasizes the importance of understanding the distinction between being an employee and being self-employed when it comes to tax deductions. If you’re an employee with questions about deductions or if you’re unsure about your tax status, this episode is a must-listen.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s tax and financial firm. To get more info go to www.drfriday.com. This is a one-minute moment.

Up until the year of 2017 we had a big change in all taxes and people basically lost what was called the 2106 come 2018. And that was where employees, if you receive a W-2 and I can’t tell you how many tax returns I’ve seen where employees have created their own schedule C’s to deduct what they thought was a legitimate expense. But you’re not self-employed people so if you’re an employee and you have deductions they are not a tax deduction on your tax return. Only if you receive a 1099 and only the expenses tied to that 1099. You need help call me 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.