Due to the Tax Cuts and Jobs Act, most people do not qualify to take Unreimbursed Employee Expenses on the federal return.
- If you are a reservist, qualified performing artist, fee- based state or local government official or an employee with impairment related work expenses, you may file form 2106 to claim the expenses.
- If you are a contractor or own your own business and the expenses are directly related to the business, claim the deduction on your Schedule C, Schedule E or Schedule F.
- If you are not included in one of these categories, you may not claim a deduction for vehicle expenses related to your job.
Deductible expenses include:
- Vehicle expenses- The standard mileage rate for 2023 is 65.5 cents per mile. For 2022, the IRS has update the standard mileage rates for January - June to be 58.5 cents per mile, and for July - December to be 62.5 cents per mile. The standard mileage rate for 2021 was 56 cents per mile.
- Parking fees, tolls, bus/train ( do not include overnight travel or commuting to/from work)
- Travel expenses (away form home)
- Business Expenses
- Meals (No entertainment)
What if I am a Reservist?
If you are an Armed Forces Reservist, you can complete Form 2106 to include the amount attributable to the expenses for travel more than 100 miles away from home in connection with your performance of services. The amount of expenses you can deduct is limited to:
- the federal per diem rate (for lodging, meals, incidental expenses)
- the standard mileage rate (for vehicle expenses)
- parking fees
- ferry fees
- and tolls
What if I am a qualified performing artist?
If you are a Fee-basis state or local government official or a Qualified Performing Artist, complete Form 2106 to include the amount attributable to the expenses incurred for services performed in your job.
What if I am disabled?
Disabled employee with impairment-related work expenses may deduct expenses in connection with their place of employment that allow the employee to work. Impairment-related expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at the place of employment.