What Employee Tax Deductions Can I Claim?
Some employee expenses may be tax deductible. There are special cases for many types of employees, including educators, armed forces reservists, impaired workers, performing artists, etc.
Employee expense tax deductions include the following items:
What Are Impairment-Related Work Expenses
If you are physically or mentally disabled and are limited in your ability to perform your job (such as performing manual tasks, walking, speaking, breathing, learning, and working) you can deduct any impairment-related work expenses. Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work.
Any impairment-related work expenses can be reported on Form 2106 efile it or 2106-EZ efile it . You will need to file Form 1040 or 1040NR and also Schedule A.
Losses from Other Activities - Schedule K-1 (Form 1065-B), Box 2
If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 27, or Schedule A (Form 1040NR), line 16 (only if effectively connected with a U.S. trade or business). It is not subject to the passive activity limitations.
Repayments Under Claim of Right
If your repayments are more than $3,000 that you included in your income in an earlier year, because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax.
Un-recovered Investments in Annuity
A retiree who contributed to an investment in an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. If the retiree dies before the entire investment is recovered tax-free, any un-recovered investment can be deducted on the retiree's final income tax return.
More information about Pension and Annuity Income.
How Can I Claim Deductions as a Performing Artist?
If you qualify as a performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. To qualify, you must meet all three of the following requirements:
- You perform performing arts services for at least two employers during your tax year. (You are considered to have performed services in the performing arts for an employer only if that employer paid you $200 or more.)
- Your allowable business expenses related to the performing arts exceed 10% of your gross income from the performing arts.
- Your adjusted gross income is equal to or less than $16,000 before deducting these business expenses.
If you do not meet all of the above requirements, you must deduct your expenses as a miscellaneous itemized deduction subject to the 2% limit.
If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. If you file a joint return, you must figure requirements (1) and (2) above separately for both you and your spouse. However, requirement (3) applies to your and your spouse's combined adjusted gross income.
Use Form 2106 efile it or Form 2106-EZ efile it , and you must file Form 1040 efile it or Form 1040NR. The efile.com online software will generate the proper forms for you.
How Can I Claim Expenses As a Official That's Paid on a Fee Basis?
If you are paid on a fee basis for your services, you can claim expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. In order to qualify under this structure, you must be employed by a state or local government and be paid in whole or in part on a fee basis.
Complete Form 2106 or Form 2106-EZ and attach it to Form 1040.
Is There a Tax Deduction for Armed Forces Reservists Traveling More than 100 Miles from Home?
You may qualify for the Reservists' Travel Tax Deduction if you are a member of a reserve unit of the Armed Forces of the United States and travel more than 100 miles away from home to perform your services as a member of the reserves. The deduction allows you to deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction.
What is the Educator Expense Deduction?
The Educator Expense Deduction allows teachers and other educators (classroom aides, counselors, principals, etc.) to deduct as much as $250 spent on qualified educator expenses. Since it's an above-the-line deduction, you do not need to itemize deductions in order to take advantage of the Educator Expense Deduction. It can be claimed Form 1040A or Form 1040 (Learn which 1040 form to file).
Find more work and job related deductions and deductible expenses.
See what other tax deductions you may qualify to claim on your tax return.
How Do I Claim Tax Deductions?
You can get any of these tax deductions when you prepare your tax return on efile.com. Based on your answers to a series of simple questions, we will determine what deductions you can claim. Then we will help you select and fill out the proper forms to get your maximum deduction amount!