Tax Tips & Calculators

If you're an employee, you can deduct unreimbursed employee business expenses if you itemize your deductions on Schedule A. The total of your employee business expenses must be more than 2% of your adjusted gross income (AGI) to be deductible. Some common business expenses you can deduct are:

• Business liability or malpractice insurance premiums - You can deduct insurance premiums you pay for:
  
  • Protection against personal liability for wrongful acts on the job
  • Professional negligence resulting in injury or damage to patients or clients
• Business use of home expenses - You can deduct part of the operating expenses and depreciation of your home if both of these apply:
  
  • You use a part of your home regularly and exclusively for business purposes.
  • You're required to work at home for the convenience of your employer.
• Rent paid for business space or equipment you use in your job
• Dues to professional societies or a chamber of commerce - If membership in an organization benefits your job, you can deduct the dues you pay. This includes organizations like:
  
  • Bar or medical associations
  • Boards of trade
  • Business leagues
  • Civic or public service organizations like Kiwanis, Lions, or Rotary clubs
  • Real-estate boards
  • Trade associations
• Subscriptions to professional journals and trade magazines related to work
• Work-related education - You can deduct the cost of education that maintains or improves the skills required by your current job, or is required by your employer. Deductible expenses include amounts paid for:
  
  • Tuition
  • Books
  • Fees
  • Equipment

You can't deduct expenses if:

• The course isn't related to your job or qualifies you for a new trade or profession.
• You're required to take classes to meet the minimum educational requirements in effect when you first got the job.

• Job-search expenses - You can deduct expenses you incur while searching for a new job in your current occupation – even if you don't find one. Expenses you can deduct include:
  
  • Employment-agency fees
  • Costs of preparing or having a resume prepared
  • Postage for mailing resumes or other job-search correspondence
  • Mileage and parking fees
  • Travel expenses, if the trip's primary purpose is to look for a new job
• Licenses, regulatory fees, and occupational taxes - You can deduct the amount you pay each year to your state or local government for licenses and regulatory fees for your:
  
  • Trade
  • Business
  • Profession

You can also deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality.

• Medical and eye exams required by your employer
• Supplies and general office or operating expenses - You can deduct the cost of tools that wear out and you throw away within 1 year from the date of purchase. However, you must depreciate the cost of tools that have a useful life beyond 1 year and cost $100 or more.
• Phone expenses - You can deduct the cost of:
  
  • Long-distance calls made for business
  • Phone features you use strictly for business
  
  You can't deduct the base rate of the first phone line into your home, but you can deduct the cost of a second business line.
  
• Travel expenses - These are those incurred while traveling away from your home overnight for your employer. Travel expenses include:
  
  • Cost of getting to and from your business destination
  • Meals and lodging while away from home
  • Baggage charges
  • Cleaning and laundry expenses while away from home