How do I deduct reimbursed work expenses?

[drpeterv]

My wife did a lot of driving for work.  Her employer reimbursed her based on her mileage.  I believe her employer included these reimbursements in her taxable income on her W-2.  How do I deduct the reimbursed funds from her taxable income?

[MargaretL]

You can deduct your wife's expenses if they were included in her W-2, gross wages.  Otherwise, you can only deduct your wife's unreimbursed costs:

Job-related expenses are located in:

1. Federal Taxes
2. Deductions & Credits (you may have to select See all tax breaks)
3. Employment Expenses
4. Job-Expenses for W-2 Income - continue through the interview, you'll be asked for the vehicle expenses, as well as other expenses that you wife paid for her job.