![]() ![]() However, there are several exceptions to this rule. Since 2020, the Tax Cuts and Jobs Act (TCJA) has eliminated miscellaneous itemized deductions for all but a handful of employees. Unfortunately, regular W-2 employees are no longer permitted to deduct unreimbursed employee expenses. In fact, contractors should never expect their clients to reimburse them for tools or supplies unless the contract says otherwise. Independent contractors may deduct unreimbursed job expenses regardless of the amount or industry. Who can deduct unreimbursed employee expenses? These expenses include things like computer equipment, books, art supplies, and anything else that students would need in the classroom. If you’re a teacher, principal, or any type of classroom aide, the IRS allows you to deduct up to $250 in unreimbursed expenses from your tax return. Educator expensesĮducator expenses represent one of the few expenses that employees can deduct from their tax returns. Similarly, certain types of performing artists can deduct the cost of costumes when the clothing is not suited for "everyday wear," per the IRS. However, there may be times when you’ll be required to purchase certain types of protective clothing, uniforms, or other items.įor example, if your job requires you to wear safety glasses and steel-t0e boots, these count as unreimbursed employee expenses. To be clear, your regular clothing is not something for which your employer is responsible, even if you are required to adhere to a company dress code. When employees cover these professional organization dues on their own, these dues also become unreimbursed job expenses.Īdditionally, professional development courses and other forms of continuing education may also be classified as unreimbursed expenses and may be used for a tax deduction if you qualify. Ideally, employers should reimburse their employees for professional organization dues paid since this money is typically connected to the local chapter of these professional societies. ![]() Professional organization duesĭepending on your industry, workers may be expected to join professional societies or even unions. Otherwise, these business travel expenses become unreimbursed employee business expenses. At the end of a business trip, employees can turn in their receipts for reimbursement from their employer. Travel expenses can easily rack up the dollars since they may include transportation, meals, lodging, and any fees associated with a business conference or other major event. If you purchase these items yourself, they may be classified as unreimbursed business expenses. This coverage extends to office supplies, computer equipment, and even the software you might need to perform your daily responsibilities. If used for essential business purposes, your tools and supplies count as business expenses. Here are some of the most common examples of expenses that you might incur as part of your job: Tools and supplies ![]() To be clear, an "ordinary expense" is anything that is common and accepted in your trade or industry.
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