![]() Claiming the unreimbursed cost as an employee expense makes it subject to the 2% test rather than the 7.5% threshold that applies if you count it as a medical expense. Fifty percent of the cost of meals and entertainment related to your job can qualify as an employee business expense, but dues to a golf or country club cannot be included. Malpractice insurance premiums may be deductible as unreimbursed employee expenses. Legal fees connected with your job, such as fees associated with reinstatement of a medical license. Laundry and dry cleaning of uniforms or special work clothing required by your job but not suitable for everyday use. Since you claim this deduction as an adjustment to income on the Form 1040 rather than as an itemized deduction, it’s not subject to the 2% rule. If your company works this way, you can deduct the fees that you pass on to your employer. Some employers pay employees' salaries while they are away from work on jury duty and require that the employees turn over to the company any jury fees they receive. The cost of a policy to protect yourself against being ousted from your job for reasons other than poor performance counts as an employee business expense. Write-offs can include travel expenses (transportation, lodging and 50% of food) if you go away from home overnight, employment-agency fees, want ads, and the cost of printing and mailing resumes. When you look for a position in the same line of work, the costs can qualify as deductible expenses. You must also use part of your home regularly and exclusively as your office. You must be required to work at home, not simply want to. It's tough for employees to get this deduction because the home office must be for your employer's convenience. If you performed services as an employee of a state or local government and you were paid in whole or in part on a fee basis, you can avoid the 2% rule by claiming business expenses in performing those services as an adjustment to income, rather than as a miscellaneous deduction. If your job requires you to entertain clients, you can deduct 50% of the unreimbursed cost as an employee business expense.įee-based government official. This deduction is available regardless of whether you itemize.Įmployment-agency fees and other costs of looking for a job in the same line of work count toward the 2% threshold.Įntertainment. Kindergarten through high school teachers and their aides can deduct up to $250 of out-of-pocket expenses for classroom supplies without worrying about the 2% rule. Because of the 2% test, however, consider claiming the Lifetime Learning credit instead.Įducator expenses. The cost of courses designed to maintain or improve the skills needed for your present job - or required by your employer or the law to keep that job - is deductible. There's a $2,000 cap on employee expense deductions for a convention held on a ship and no write-off is allowed for any convention focusing on personal investments or financial planning.ĭamages paid to a former employer for breach of an employment contract.Įducation. Virgin Islands and a few other locations) or, if not, it must be as reasonable to go foreign as to stay in the favored area. ![]() or "North American area" (including Canada, Mexico, Puerto Rico, U.S. For costs to be deductible, the convention must be in the U.S. Again, this deduction is allowed as an employee expense only if your employer requires you to have the computer to do your job.Ĭonventions. Expensing lets you deduct the full business cost in one year, rather than depreciating it over several. If you use the computer more than 50% of the time for business (rather than personal) purposes, you can “expense” the business portion of the cost. If your employer requires you to have a computer to perform your duties - but doesn't pay for it - you can depreciate the cost as an employee business expense. ![]() The cost is a deductible employee expense if commuting to the temporary site is expected to last one year or less.Ĭomputer. If your employer requires you to have a cell phone to perform your duties - but doesn't pay for your service - you can deduct the business portion of your monthly bills as an employee expense.Ĭommuting to temporary job site. If your employer requires you to have a cell phone to perform your duties - but doesn't pay for it - you can depreciate the cost as an employee business expense.Ĭell phone service. If you make a loan to the company you work for and it fails to repay you, the loss can qualify as an employee expense.Ĭell phone. This deduction is not subject to the 2% rule.īusiness bad debt. If you travel more than 100 miles away from home in connection with reserve duties that require an overnight stay, you can deduct food, lodging and transportation costs as an adjustment to gross income rather than as an itemized deduction.
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