Figuring Out Which Work-Related Expenses Are Deductable

This week we hear from Jim in Owings Mills:

Dear Alice,

I spend quite a bit of money for my job.  As an employee what kinds of expenses can I deduct?

Jim

Dear Jim,

If you itemize your deductions and incur expenses related to your employment that your employer does not reimburse you for, you may be able to deduct certain employment related expenses such as:

• Business travel away from home
• Business use of your car
• Business meals and entertainment
• Education related to work
• Supplies
• Tools
• Use of your home by your employer (but when your employer doesn’t supply you with an office)

You need to keep records of your business expenses you deduct and you can take the deduction on form 2106 which is part of your miscellaneous deductions on Schedule A.

Many Happy Returns!

Alice A. Reid, EA

Disclosure:  the nature of taxation is complex and information used to complete your personal tax return is dynamic – meaning that one area of your tax return can affect others, while our goal is to provide you with good general information, IRS may require certain documentation or substantiation to support any tax position you take on your tax return.  If your issue is complex we recommend you talk to a tax professional who can better understand your entire tax situation and advise you appropriately.