Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.
You can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless you are a qualified employee or an eligible educator. To take the deduction, you must complete Form 2106, Employee Business Expenses.
If you are in one of these employment categories, you are considered a qualified employee:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
An expense is considered qualified if it is:
- Paid or billed during the tax year
- For carrying on a trade or business of being an employee, and
- Ordinary and necessary
If you're unsure of where your specific situation falls, please reach out to us to discuss.