Can a W-2 employee deduct unreimbursed employee expenses?

Can a W-2 employee deduct unreimbursed employee expenses?

  • August 5, 2020
  • David Greene
  • Comments Off on Can a W-2 employee deduct unreimbursed employee expenses?

Prior to 2017, if a W-2 employee had business expenses related to his employment that his employer did not reimburse, he could take a deduction for those expenses.  However, the Tax Cuts and Jobs Act of 2017 eliminated those deductions as well as home office deductions.   Also, most other miscellaneous deductions were taken away by the law.  These cuts became effective on January 1, 2018.  This same law doubled the standard deduction, so the aim was to get more people to take the standard deduction rather than itemize.  However, a few groups of employees, such as struggling performing artists, can still qualify for a business expense deduction.  Check with a qualified professional to see if you might qualify. Your best avenue to get those expenses reimbursed is to negotiate with your employer.  The tax law allows the employer to reimburse employees for “reasonable” expenses directly related to the employment (e.g. home office, child care expenses).  These reimbursements are not income to the employee and are deductible for the employer.

Tags: , , , , , , , , , , ,

Office Location

11 McGee Street
Greenville, SC 29601

Phone: (864) 271-7940
Fax: (864) 370-3413
Toll Free: 1-800-216-1116