Tax Law Update: Beginning with 2018 tax returns, most unreimbursed employee business expenses are no longer deductible, with few exceptions. Many such expenses had been allowed as an itemized deduction in prior years, for the amount that was more than 2 percent of adjusted gross income.
Among the expenses that are no longer deductible:
- Vehicle and other local transportation expenses to visit customers
- Travel and meal expenses on trips away from home
- Work tools and equipment
- Work clothes and uniforms
- Electronics used for work, such as cell phones, tablets and computers
- Union and trade association dues
- Home office expenses
- Education costs to maintain or improve current skills
- Subscriptions to work-related professional journals and other publications
- Job search expenses
What’s Still Deductible, and for Whom?
Certain tax breaks are not affected by the law change:
- Teachers can still claim the $250 above-the-line deduction for educator expenses.
- Armed Forces Reservists can still claim certain travel expenses.
- State and local government officials who are paid on a fee basis and qualifying performing artists can still claim expenses.