Business Related Expenses as and employee must be deducted as Itemized Deductions in Schedule A. Additionally these deductions are subject to the 2% of AGI rule. This means that only the amount of the deductions that are above 2% of your AGI are actually deductible. For Example, if your AGI is $30,0000.00 then you must have more than $600.00 in Miscellaneous Deductions for them to apply on Schedule A. Additionally if the sum of the Itemized Deductions from Schedule A does not exceed the amount of the Standard Deduction, Schedule A will not be beneficial to your return.
I have included a list of common Itemized Deductions so that you can add as many as possible and make an informed decision on electing your deduction. Below are the Standard Deduction amounts for Tax Year 2016:
- Single $6,300.00
- Married Filing Joint
or Qualified Widow(er) $12,600.00
- Married Filing
Separate $6,300.00
- Head of Household
$9300.00
- Dependent $1,050.00
Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7.
You can deduct only unreimbursed employee expenses that are:
Paid or incurred during your tax year,
For carrying on your trade or business of being an employee, and
Ordinary and necessary.
An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.
You may be able to deduct the following items as unreimbursed employee expenses.
Business bad debt of an employee.
Business liability insurance premiums.
Damages paid to a former employer for breach of an employment contract.
Depreciation on a computer your employer requires you to use in your work.
Dues to a chamber of commerce if membership helps you do your job.
Dues to professional societies.
Educator expenses.
Home office or part of your home used regularly and exclusively in your work.
Job search expenses in your present occupation.
Laboratory breakage fees.
Legal fees related to your job.
Licenses and regulatory fees.
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Malpractice insurance premiums.
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Medical examinations required by an employer.
Occupational taxes.
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Passport for a business trip.
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Repayment of an income aid payment received under an employer's plan.
Research expenses of a college professor.
Rural mail carriers' vehicle expenses.
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Subscriptions to professional journals and trade magazines related to your work.
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Tools and supplies used in your work.
Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.
Union dues and expenses.
Work clothes and uniforms if required and not suitable for everyday use.
Work-related education.
https://www.irs.gov/publications/p529/ar02.html
