Blog

Who Qualifies For The Employee Business Expense Deduction

After the Tax Cuts and Jobs Act (TCJA) tax reform, 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

If you have any questions regarding claiming the employee business expense deduction on your tax return, please contact us at (469) 467-4660, or info@ahuja-consultants.com.

Related Posts