I was employed with a group for the 1st half of 2008 and a 1099/W2 person for the second half of 2008. Ideally, deductions are best taken off the 1099 income.

If I went to seminars/conferences related to my field in the beginning of the year, is it reasonable/legal to deduct them as 1099 expenses, even though I was a 1099 in the second half of the year only? The seminar did improve my ability to perform in my field so it has benefited both my 1099 and W2 jobs.

This question also extends to the other deductions that are available. Thanks so much for this wonderful message board!

Zip Code: 02169

That's a tough one.

All I can say is that you'll get a much bigger bang for your buck by claiming these expenses directly against your 1099 income on the Schedule C.

Plus, it's important to remember that the IRS is very "form over substance" oriented. So even with the expenses you paid during the first half of the year, if your total 1099 income exceeds your total expenses for the year, I think that the IRS would think everything seems to be okay with your tax reporting. And if your total expenses for the year don't exceed $5k, and you won't show a loss for the year, you'll complete the 3 line Schedule C-EZ instead of the more detailed Schedule C, lumping all of your professional expenses together on one line.

Finally, if, on the other hand, your expenses from the first part of the year would push your Schedule C to a loss, I would be more hesitant to report those expenses on a Schedule C.

Zip Code: 01801