Check Here for Latest COVID-19 Related Tax Updates

phone: 978.774.3000    fax: 978.774.8170    185 Centre St., Danvers, MA 01923


Archive for January 13th, 2021

Who Qualifies for the Employee Business Deduction

Wednesday, January 13th, 2021

Unlike in years past, taxpayers can no longer claim unreimbursed employee expenses as a miscellaneous deduction on their Schedule A unless certain qualifications are met. If you are a qualified employee or an eligible educator expenses can be deducted as an adjustment to income on Form 2106. A qualified employee is one of the following:

• Armed Forces Reservists
• Qualified performing artists
• Fee-basis state or local government officials
• Employees with impairment-related work expenses

A qualified expense is:
• Paid or billed during the tax year
• For carrying on a trade or business of being an employee, and
• Ordinary and necessary

Publication 529 gives a more in depth look at what is and isn’t deductible:
https://www.irs.gov/pub/irs-pdf/p529.pdf

Please consult your tax advisor on all the above information.