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Who Qualifies for the Employee Business Deduction

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:

The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information. Please consult your tax advisor on all the above issues.

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