I have unreimbursed employee expenses (mileage, hotel and food expenses, approximately $40k) How can I reduce my income by these expenses?

[hobertmsmith]

I received a w2 from my employer for tax year 2019.  I work as a consultant for this company and have to travel and be at the jobsite 4 days per week and incur mileage, hotel, and food expenses while away from home.  A housing allowance is provided to offset some of the cost and is added as income to my w2.  I used to claim the expenses as unreimbursed employee expenses.  Can I use the schedule C to report my total income and list expenses there to reduce the tax burden?

[DoninGA]

Since you are an employee receiving a W-2 for your wages, taxes and FICA taxes being withheld, your employee business expenses are not deductible on a federal tax return due to the tax code changes in effect for tax years 2018 thru 2025.

You cannot enter your employee business expenses on a Schedule C since those expenses were not incurred as a self-employed person.

[rjs]

No, you cannot use Schedule C. W-2 income cannot be reported on Schedule C. And, as you apparently know, the deduction for job-related expenses was eliminated for 2018 through 2025. The bottom line is that there is no way that you can use the expenses to reduce your taxable income.

You should discuss with your employer how the change in the tax law has affected you, and try to get them to reimburse you for at least part of the expenses under an accountable plan.

[hobertmsmith]

Thanks,