Unreimbursed Employee Expenses
Employees who incur certain job related expenses may be able to claim some or all of the expenses as deductions if they itemize their deductions on Schedule A.
Employees can deduct certain job related expenses if the following criteria are met:
The expenses are paid or incurred by the employee during the tax year.
The expenses are for carrying on the trade or business of being an employee.
The expenses are ordinary and necessary in the taxpayer’s industry and/or line of business.
Some of the more common types of expenses that may qualify as an employee expense (if not reimbursed) are:
Business use of a vehicle
Business travel away from home
Professional journals and trade magazines
Membership dues, licenses, permits, and regulatory fees
For carpenters, contractors, electricians & machinists:
Small tools, supplies, safety shoes & glasses, hard hats, and work gloves
Work uniforms worn by: delivery workers, firefighters, law enforcement officers, letter carriers, & transportation workers
An expense that is considered common in the employee’s profession is an ordinary expense.
An expense that is appropriate and helpful to the employee’s professional career is a necessary expense. Please note that an expense does not have to be required by the employer to be considered necessary.
Finally it is important to note that any travel, transportation, meal or entertainment expenses including expenses paid for by the employer are reported on form 2106 or 2106-EZ. All other unreimbursed employee expenses are reported directly on Line 23 of Schedule A.