In Schramm v. Commissioner, T.C. Memo. 2011-212 (Aug. 30, 2011), the Tax Court decided that an adjunct professor (who was paid $20,000) was an “employee” and not an independent contractor 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 which is subject to the 2% floor on miscellaneous itemized deductions.
Special thank to Paul L. Caron for bringing this article to my attention. Paul L. Caron is the Charles Hartsock Professor of Law at Univ. of Cincinnati College of Law. For Professor Caron’s article see Tax Court: Adjunct Prof Is Employee, Cannot Deduct Expenses on Schedule C.