Here’s who qualifies for the employee business
expense deduction
Employee business expenses can be deducted as an adjustment to income only for
specific employment categories and eligible educators.
Taxpayers can no longer claim unreimbursed
employee expenses as miscellaneous itemized deductions, unless they are a
qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses to take the
deduction.
If someone falls into one of
these employment categories, they are considered a qualified employee:
- Armed
Forces reservists
- Qualified
performing artists
- Fee-basis
state or local government officials
- Employees
with impairment-related work expenses
No other type of employee is
eligible to claim a deduction for unreimbursed employee expenses.
Here’s what makes something
a qualified expense:
- Paid
or billed during the tax year
- For
carrying on a trade or business of being an employee, and
- Ordinary
and necessary
Taxpayers should know there
are nondeductible expenses.
There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.
More Information:
IRS updates guidance for deductible business expenses
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