Hal_Al
Level 15

Deductions & credits

As previously stated, you as  a W-2 employee cannot deduct you job expenses, including liability insurance or even your dental license.

 

BUT, your employer is allowed to reimburse you for job expenses.  The reimbursement is tax free to you as long as it is done under an "accountable plan"; basically you submit itemized expense reports.  Furthermore, your employer gets a tax deduction for those expenses (essentially a double tax benefit; tax free to you, deductible to them).   As @Opus 17  suggested, you should considered renegotiating your compensation package,  even considering becoming a 1099-NEC (contract) employee.

 

Be aware,  there a limitations on the QBI (qualified business income) deduction for workers who switch from W-2 to 1099,  with the same employer.  The QBI is in addition to expenses deductions