Employee expenses for W2 employee. I have a personal car that is reimburse at .16 cents per mile. Usually would be able to write off the difference between .16 and .545.

[Carl]

All W-2 work related expenses are no longer deductible starting in 2018.

[freitz1]

So there is no way around this? Wow this is a huge hit this year. Imagine all office expenses fall under this new rule?

[Carl]

You may want to talk with your employer about what called an "accountable plan" for reimbursing employee expenses. WIth that type of plan, you get reimbursed what you can prove with receipts that you provide to the employer. Then the amount reimbursed is not included on your W-2. Therefore, you never pay taxes on it.

[freitz1]

I don't pay taxes on what my employer covers. I have a home office that helps with productivity. I can no longer write items off as far as monitors desk upgrades etc? I work at home 100% of the time.

[Carl]

You can't even claim a home office for your W-2 job starting in 2018. Absolutely *NO* W-2 job related expenses of any kind are deductible, unless you're active duty military with unreimbursed qualified moving expenses, or disabled and have out of pocket unreimbursed expenses related to your disability so you can work.

[freitz1]

Wow this really hurts those of us that 100% from home and buy most of our items that make working successful. Esp. when the car is only portion paid for. Might need to consider being paid as a contractor.

[Carl]

If the employer will not agree to establishing an accountable reimbursement plan, then I'd definitely go the self-employment route were I in such a situation. Just keep in mind that when self-employed, you can add that 15.3% self-employment tax to what you have to pay also. Right now, your W-2 employer pays that 15.3% out of their money.

[freitz1]

Turbo Tax cpa tells me I should be able to deduct this since I work 100% from home.

[Carl]

I question that since you're a W-2 employee. Per IRS Publication 529 at <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p529.pdf">https://www.irs.gov/pub/irs-pdf/p529.pdf</a> on page 2, the only way you can claim and deduct your job related expenses are if you meet at least one of the four exceptions listed below.
---------------------------------------
You can no longer claim a deduction for unreimbursed
employee expenses unless you fall into one of the following
categories of employment, or have certain qualified
educator expenses.
• Armed Forces reservists.
• Qualified performing artists.
• Fee-basis state or local government officials.
• Employees with impairment-related work expenses.

I don't see anything in that publication addressing percentage of employment from home.