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Un-Reimbursed Business Expenses – Tax Guide

If you incur expenses related to your job, and you are not reimbursed by your employer, the expenses may be deductible as a Miscellaneous Itemized Deduction.

Common Expenses Are:

  • Mileage to visit clients (using current IRS approved mileage rates)
  • Travel (air, car rental, hotel, etc.) to visit clients
  • Meals while away from home
  • Meals to entertain clients
  • Dues for organizations related to business (Chamber of Commerce, etc.)
  • Office Supplies
  • Work Uniforms (can not be used for general use)
  • Work or safety shoes
  • Cell Phone (percentage used for business)
  • Business use of the home

You must keep records of the expenses and the business purpose of each expense. For meals and entertainment expense you should maintain records of all persons included for each expense.

You are not required to obtain a sale from taking a client to lunch but you should have a reasonable expectation of a future business relationship. You must reduce the expenses by any partial reimbursement you receive from your employer. To be deductible these expenses combined with other miscellaneous deductions must exceed 2% of your adjusted gross income (combined with your spouse if filing joint).

Other Miscellaneous Deductions Include

  • Tax Preparation Fees
  • Safety Deposit Box
  • Union Dues
  • Investment Expenses
  • Professional Subscriptions
  • Gambling Losses (to extent of winnings)

IRS Circular 230 Notice: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.