 Here we are in our example form 1040 populated with LASERT tax soft where you don't need tax soft to follow along but it's a great tool to run examples with our starting scenario the single filer Mr. Anderson no dependence we've got the 100,000 W2 income the 12,950 standard deduction getting us down to the 87,050 bottom line we're mirroring that over on our excel worksheet formula the tax formula the 100 the 12,950 the 87,050 second page of the W2 the software calculating the tax 14774 withholding 15,000 gets us down to that 226 which we're mirroring over here our major focus however is on the first half of the calculation to get down to this basically taxable income we're going to go to schedule one now and we're going to go to page two of schedule one page two of schedule one we're focused here on certain business expenses of reservists performing artists and fee based government officials now you'll note we're attaching the form 2106 is where we typically go here remember the general outline being that a deduction kind of makes sense from an income tax statement or format an income tax system if it's something that needed to be consumed in order to generate revenue so we tax people on the net income in essence as opposed to gross income we could see that most clearly on say a schedule c type of business where we have in essence an income statement income minus expenses expenses being in essence deductions getting down to the net income we don't see that as clearly on say a W2 type of form because the idea being that the employer is the one that's taking care of the expenses and therefore it's they're trying to make it really easy of that way right they're trying to force the employer to to take care of the expenses and so on and and then we don't have all these deductions and whatnot in that situation it used to be that if you itemized then if you had some deductions that you were taking in order to generate your revenue even though you are W2 employee that you might be able to take some of those deductions if you were had the capacity to itemize which seemed a little bit unfair because that would only benefit people that are have enough money that they're actually itemizing and whatnot so it seems so they kind of reduced that a lot so you might still hear people saying or asking about that kind of scenario and they've kind of removed that which kind of makes sense to me given the fact that most people are going to be taking the standard the standard deduction and so that's the general idea so that's what might come up often time they've limited the amount of W2 employees to be able to take the business deductions and and that's might make it easier or possibly be more beneficial to the lower income side of things because they're going to be taking the standard deduction anyways but in any case that means they still left some room by pushing this over to the schedule one part two for particular situations what is your situation the situation such as the reservists performing artists and fee based government officials so you might not have anyone you know those are fairly rare to run into those particular situations but if you do that's where you go it's more likely you'll run into a situation where people are still asking about prior rules and whatnot and you got to kind of explain the the change