What's the best way for me to write off expenses like car rental, repairs and gas?

Question

I'm a delivery driver in CA. I have to provide my own equipment and vehicle to make deliveries. I pick up large orders from various venders around Los Angeles and deliver the orders to clients.

Before 2019 I worked as a freelance driver then in late 2019 I was classified as an employee and get a W-2. 2022 was an expensive year for me to operate my car. My car broke down and I had to rent a car to make deliveries.

Can I write off any of these? - I appreciate any input.

MatthewD · Answer

Hi Piano,

Because you are a W2 wages employee, you are unable to deduct job expenses on your Federal Tax Return.  Up until the passage of the Tax Cuts and Job Act of 2018 (TCJA) you could itemize certain unreimbursed employee expense, but not anymore.

However, since you are a CA resident, you can deduct unreimbursed employee expenses, like you mentioned, on your CA state tax return.