Tips & Advice
Employee Business Expenses
Don't overlook Employee Business Expenses. You will miss out on deductions you are allowed to take!¬† ¬†
Unreimbursed employee business expenses are allowed as a miscellaneous itemized deduction.¬† The expenses must be ordinary and necessary.¬† An expense is ordinary if it is common and accepted in your type of business.¬† An expense is necessary if it is appropriate and helpful to your business. ¬†
Most common types of deductible employee business expenses are professional dues, safety equipment required by an employer, and business travel.¬† You may also take deductions for the cost of uniforms and other special work clothes that are not suitable for everyday wear, including the cost of cleaning the clothing.¬† Some other commonly overlooked employee business expenses include:
- Transportation between two jobs in the same day.
- Certain legal fees to protect taxable income.
- Subscriptions to professional and trade magazines.
- Job search expenses.
- Tools and supplies used in your work.
- Licenses and regulatory fees.
- Computer and cell phone required by employer.
- Education that maintains or improves your current job skills.