What Job Expenses Are Deductible on Schedule A?
The Schedule A form is used to itemize deductions and can only be used when you elect not to take the standard IRS deduction. The total of all the deductions on the Schedule A is deducted from your gross income to reduce your taxable income. Line 21 of the Schedule A allows you to deduct unreimbursed employee expenses. These are subject to a 2 percent limit, so you can only deduct expenses that exceed 2 percent of your income. Thus, if you earn $40,000 per year, you could deduct unreimbursed employee expenses above and beyond $800.
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Travel
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If you have to travel for your job, you can deduct travel expenses as long as your employer does not reimburse you for them. Travel expenses include mileage, plane tickets, subway fees, taxi fares, parking tolls and 50 percent of your meal costs and entertainment costs. Use Form 2106 to determine the total amount of travel expenses incurred during the year.
Education
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Employees who take college classes or complete training to improve their job knowledge can deduct the costs of tuition, books and supplies. If you commute out of town to the classes or the training, you can deduct travel expenses incurred while continuing your education.
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Uniforms
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If you are required to wear certain clothing, you can deduct the cost of the clothing as long as the clothing is not suitable for everyday wear. You can also deduct the cost of special clothing such as steel-toe boots, safety goggles and other protective gear.
Other Deductions
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Other unreimbursed employee expenses may include liability insurance, professional organization dues, journal subscription fees, supplies and business license fees. Also, you can deduct the cost of gifts purchased for bosses, co-workers, customers or clients. You can only deduct up to $25 for each business gift.
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References
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