Tax Deductible Employee Business Expenses

Today we are going to look at tax deductions you can take related to employee business expenses.

As an employee, you may incur some expenses related to your job. If these expenses are ordinary and necessary business expenses, these expenses may be tax deductible. Once again, make sure you keep accurate records. Any expenses that are reimbursed by your employer are not tax deductible. All expenses are are subject to the 2% Adjusted Gross Income(AGI)limitation. Generally, you must fill out form 2106 Employee Business Expenses And Schedule A Itemized Deductions

You can deduct these expenses you have while traveling away from home for business as long these expenses are both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business, profession or trade. A necessary expense is one that is helpful and appropriate for your business.

Here are some common expenses you might have and can deduct when traveling away from home.

Travel by airplane, train, bus or car between your home and business destination. If you were provided a ticket or otherwise travel for free, your cost is zero. Fares for taxi, commuter bus and airport limousine are also deductible. If you operate your car for business travel, you can deduct either standard mileage or actual expenses, along with business related tolls and parking. If you rent a car, you can only deduct those expenses related to business use.

If you send baggage and sample or display material between your regular and temporary work locations, these expenses are tax deductible.

Lodging and meals are tax deductible if your business trip is overnight or long enough that you need to stop for sleep and rest to properly your job duties. Refer to Publication 463 for more detailed information.

Dry cleaning and laundry are tax deductible. Business calls while on your business trip are also deductible. This includes communication by fax machine or any other device. Tips you pay for any of the expenses listed here are also tax deductible.


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Tim Watson is a tax preparer during the season who also runs an SEO directory and an iPod directory. You may use this article as is provided the resource box stays intact.