For most employees, job-related expenses are not deductible on a federal tax return. The Tax Cuts and Jobs Act (TCJA) eliminated the deduction for unreimbursed employee business expenses beginning with the 2018 tax year, and that provision remains in effect for the 2026 tax year (filed in 2027).
If you're a typical W-2 employee and your employer does not reimburse you for work expenses, you generally cannot claim those costs as an itemized deduction on your federal return.
Who Can Still Deduct Job-Related Expenses?
A limited group of taxpayers may still qualify to deduct certain unreimbursed work expenses, including:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Certain employees with impairment-related work expenses
If you fall into one of these categories, our software will help determine whether your expenses qualify and where they should be reported on your return.
Examples of Job-Related Expenses That Are Generally Not Deductible for Employees
The following expenses were previously reported as unreimbursed employee expenses but are no longer deductible for most W-2 employees:
- Auto expenses related to your job
- Travel expenses
- Work-related education and school expenses
- Small tools and supplies
- Home office expenses
- Union dues
- Professional association dues
- Job search expenses
- Legal fees related to employment
- Required uniforms and protective clothing
What About Home Office Expenses?
Many taxpayers are surprised to learn that employees working from home generally cannot deduct home office expenses on their federal return.
However, if you're self-employed, an independent contractor, or a gig worker reporting business income on Schedule C, you may still qualify for a home office deduction if you meet the IRS requirements.
Can Self-Employed Individuals Deduct Business Expenses?
Yes. The TCJA change applies to employee expenses, not business expenses claimed by self-employed individuals. If you have self-employment income, you may be able to deduct ordinary and necessary business expenses, including:
- Vehicle expenses
- Business travel
- Office supplies
- Professional dues and subscriptions
- Business insurance
- Home office expenses (if qualified)
- Work-related education
- Tools and equipment
These expenses are typically reported on Schedule C and can reduce your taxable business income.