How to claim unreimbursed expenses for work

Forum|Forum|4 years ago
March 21, 2022
3 replies
1 view

I understand from reading previous posts that the deduction for job-related expenses was eliminated for 2018 through 2025. I just want to be SURE I'm clear. I worked remotely from IN for a company located in IL. The company manager required that I travel to the site 2 times - for a week each time. I had to pay my own travel and hotel expenses. The company would not reimburse me for those expenses, even though they mandated the travel. Is there no way I can get a deduction at least for these expenses? Thanks.

bosso3

Level 7

I'm not expert on this, but I'd refer to https://www.irs.gov/newsroom/heres-who-qualifies-for-the-employee-business-expense-deduction

I'm assuming you are an employee of the company, and worked from home for your convenience and thus unless you meet the qualifications listed in the above link, you can not claim these expenses.

If you are not an employee, and are a self-employed contractor these would be business expenses reported on Schedule C.

MinhT1

Level 15

Mileage that you drive for a job as an employee is a job-related expense.

Up to tax year 2017, job-related expenses were deductible as an itemized deduction subject to the 2% of AGI floor.

Under the Tax Cuts and Jobs Act, the itemized deductions for job-related expenses subject to the 2% of AGI floor are suspended for expenses incurred after December 31, 2017 through 2025.

Therefore, your mileage as an employee is no longer deductible for tax year 2021.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

LenaH

Employee Tax Expert

You are correct. Job-related expenses for employees are no longer deductible on most people’s federal return in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress passed and the President signed into law on December 22, 2017.

The job-related expenses deduction is only available to people who work in one of these specific professions or situations:

Armed Forces reservist
Qualified performing artist
Fee-basis state or local government official
You're disabled and have impairment-related expenses

Lastly, unreimbursed employee expenses are not deductible on your Indiana state return. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania are the only states that provide a deduction for unreimbursed employee expenses.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

SharonINAuthor

Level 2

@bosso3 @LenaH @MinhT1
Thanks everyone. I kind of read it like that - it just sucks that it was mandated by the employer to fork over $500/week in hotel charges and none of it was reimbursable. Was hoping at least to catch a break on the tax end, but I guess I should've known better. Thanks for the input and clarification all.

KrisD15

Level 15

Since you are an employee, you might suggest the employer setup an accountable plan for your expenses.

That way you get reimbursed and they deduct the expense.

Accountable Plans

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Hal_Al

Level 15

It's probably no consolation, but even in the "old days" , job expenses were only a misc. itemized deduction. You only got to deduct that portion of your misc. itemized deductions that exceeded 2% of your AGI, and then only if your total itemized deductions exceeded the standard deduction (which was doubled under the 2018 tax law. . (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule ).