Unreimbursed Employee Business Expenses

Unreimbursed Employee Business Expenses

If your employer reimbursed you for any job expenses, or you have automobile, travel, transportation, meal expenses, impairment-related expenses, or qualified performing artist expenses for your job, you must complete Form 2106 (Employee Business Expenses).

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You can deduct on Schedule A, the following unreimbursed employee expenses:

• Union and professional dues (but not union dues that are connected to certain lobbying and political activities)
• Trade publications/books (if they relate to your work)
• Uniforms/other work clothes and cleaning costs (if required and not suitable for everyday use)
• Job hunting costs (only if searching in the same line of work)
• Educational expenses related to current employment (BUT…if education qualifies you for a new trade or business or is needed to meet the minimum requirements for your job, it is not deductible) (You cannot deduct education expenses used in determining a tax-free portion of a distribution from a Coverdell Education Savings Account (ESA))
• Safety equipment
• Small tools (tools expected to last longer than a year can be depreciated)
• Employee Home Office (if for the convenience of your employer)
• Medical examinations required by your employer
• Security clearance expense
• Malpractice insurance
• Licenses and regulatory fees for your profession
• Depreciation on a home computer or cellular phone (if your employer requires you to use one
• Business telephone calls (you cannot deduct the base fee for your first phone line)

Your unreimbursed employee expenses are subject to the 2% AGI Limitation.

You may also wish to review the list of miscellaneous expenses you cannot deduct.
For more information, see IRS Publication 529, Miscellaneous Deductions.

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