Deductions & credits


@Jessica1981 wrote:

I worked as homehealth employee. I got pd thru the state but listed as my employer was the woman I took care of. I had to carry insurance in my name on her car & transport her. I pd out of pocket when I did. Which I should not have had too but did. 


No.  If you are a W-2 employee of anyone, work-related expenses are not tax deductible at least through 2025.  (The law may change after that.)  If you are an independent contractor (you receive gross wages without deductions and are responsible for paying your own employment taxes on a schedule C) you can deduct ordinary and necessary business expenses for the type of business you perform.

 

Your employer can reimburse you tax-free using the standard mileage rate if  they are willing, and if you substantiate the business purpose of the mileage, usually by means of a logbook or mileage diary.  The standard mileage rate includes allowances for fuel, maintenance and insurance, the only thing you can add extra is parking and tolls.  Your employer can reimburse you for the actual cost of food and lodging if you travel out of town for business, if they want to.

 

However, your employer is not required to reimburse you for work-related car and travel unless it is part of your employment arrangement or contract. 

 

In some states, if you have unreimbursed expenses that decrease your net wages to below minimum wage, the state labor board may require the employer to make it up to you.  (For example, if a pizza delivery driver gets paid minimum wage but has to use their own car and buy their own gas, this is a violation of wage and hour laws in some states.)   However, this might not apply if you incurred these expenses without authorization.