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Wednesday, August 31, 2011

Tax Court: Adjunct Prof Is Employee, Cannot Deduct Expenses on Schedule C

Tax Court Logo 2 The Tax Court decided yesterday that an adjunct professor (who was paid $20,000) was an employee of Nova Southeastern University. As a result, he could not deduct the claimed $2,785.63 of business expenses on Schedule C and instead had to report them as employee expenses on Schedule A subject to the 2% floor on miscellaneous itemized deductions. Schramm v. Commissioner, T.C. Memo. 2011-212 (Aug. 30, 2011).

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Comments

Would the outcome be different if NSU issued the professor 1099, not W-2?

Posted by: multistate sales tax filing | Aug 31, 2011 4:11:22 PM

$20,000 for an adjunct? That seems high. how many courses did he teach?

Posted by: anon | Aug 31, 2011 5:29:42 PM

If he received a 1099, then he could deduct business expenses against business income. But, of course, the IRS would claim that the university misclassified him as an independent contractor rather than as an employee. You can't win.

Posted by: Woody | Aug 31, 2011 6:49:05 PM

I am an adjunct college instructor. The trend is that colleges hire very few full time instructors and hire many more part timers. To make a living we teach in three to four districts. I commute 300 to 400 miles per week. I only get paid for time spent in the classroom. I must have my own portable computer and internet access as most of my prep is done on the road or at home. I have no office and receive no compensation for travel, prep and grading time. Believe me we should not be subject to the 2% on the schedule A and should be allowed to file a schedule C. Not only are we grossly underpaid for our services but we receive no break on expenses. Also medical insurance is a big issue as I have to pay that as well and then I am subjent to the 7% there. This situation needs to be remedied as we ae getting hit from both directions.

Posted by: Adrienne Calomino | Sep 6, 2011 9:17:19 AM