Can I deduct job-related expenses on my tax return?
For most employees, the answer is no.
The Tax Cuts and Jobs Act (TCJA) suspended the federal deduction for unreimbursed employee business expenses. As a result, most employees can't deduct job-related expenses on their federal tax return.
However, some taxpayers may still qualify to claim these expenses on Form 2106, Employee Business Expenses. These exceptions generally include:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
If you don't fall into one of these categories, entering these expenses generally won't affect your federal return, although some states may still allow a deduction.
What Are Examples of Job-Related Expenses?
If you're eligible to claim employee business expenses, the following costs may qualify when they are ordinary and necessary for your work:
- Safety equipment, small tools, and supplies required for your job
- Uniforms required by your employer that aren't suitable for everyday wear
- Protective clothing such as hard hats, safety shoes, and safety glasses
- Physical examinations required by your employer
- Dues paid to professional organizations and chambers of commerce
- Subscriptions to professional journals, trade publications, and industry resources
- Employment agency fees and certain job search expenses related to finding work in your current occupation
- Qualified business use of part of your home (subject to IRS requirements and limitations)
- Certain work-related education expenses that maintain or improve job skills
Keep in mind that expenses reimbursed by your employer generally aren't deductible.
Home Office Expenses for Employees
Most employees can't claim a home office deduction on their federal return. However, taxpayers who qualify to deduct employee business expenses under Form 2106 rules may have additional considerations.
Home office deductions are subject to specific IRS requirements regarding exclusive and regular business use. Review IRS Publication 587, Business Use of Your Home, for details about eligibility and limitations.
Education Expenses
Certain education expenses may qualify if the coursework:
- Maintains or improves skills needed in your current job, or
- Is required by your employer or by law to keep your current position, salary, or professional status
Education that qualifies you for a new trade or business generally doesn't qualify as a deductible employee business expense.
For more information, see IRS Publication 970, Tax Benefits for Education.
Important: Not All Work Expenses Are Deductible
Many taxpayers assume that any expense related to their job can be deducted. Unfortunately, that's no longer the case under current federal tax law.
Where Can I Find More Information?
For additional guidance on qualified employee business expenses, review the instructions for Form 2106, Employee Business Expenses.