If you itemize
deductions and are an employee, you may be able to deduct
certain work-related expenses. The IRS has put together the
following facts to help you determine which expenses may be
deducted as an employee business expense.
qualify for an itemized deduction include:
You must keep
records to prove the business expenses you deduct. For general
information on recordkeeping, see IRS Publication 552,
Recordkeeping for Individuals available on the IRS website,
or by calling 800-829-3676.
If your employer
reimburses you under an accountable plan, you do not include the
payments in your gross income, and you may not deduct any of the
An accountable plan
must meet three requirements:
You must have
paid or incurred expenses that are deductible while
performing services as an employee.
adequately account to your employer for these expenses
within a reasonable time period, and
You must return
any excess reimbursement or allowance within a reasonable
If the plan under
which you are reimbursed by your employer is non-accountable,
the payments you receive should be included in the wages shown
on your Form W-2. You must report the income and itemize your
deductions to deduct these expenses.
expenses on IRS Form 2106 or IRS Form 2106-EZ to figure the
deduction for employee business expenses and attach it to Form
1040. Deductible expenses are then reported on Form 1040,
Schedule A, as a miscellaneous itemized deduction subject to 2%
of your adjusted gross income rules. Only employee business
expenses that are in excess of 2% of your adjusted gross income
can be deducted.
For more information
see IRS Publication 529, Miscellaneous Deductions available on
the IRS website,
or by calling 800-829-3676