specific employment categories and eligible educators.
Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses to take the deduction.
If someone falls into one of these employment categories, they are considered a qualified employee:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.
Here’s what makes something a qualified expense:
- Paid or billed during the tax year
- For carrying on a trade or business of being an employee, and
- Ordinary and necessary
Taxpayers should know there are nondeductible expenses.
There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.
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