Ask A CPA: What Work Expenses Can I Deduct on My Tax Return?

Question: Are there work expenses that I can deduct on my tax return?

As an employee, you incur expenses related to your job pretty much daily. From your morning joe to gas and mileage expenses, it costs to work! Even if you receive a salary, benefits and perks…But you may be surprised that some of these expenses may actually be deductible on your tax return this year.

But, there are two conditions here:

In order to deduct work-related expenses, your total itemized deductions must be greater than the standard deduction. For reference, the 2017 standard deduction is $6,350 for single taxpayers and married couples filing separately , $12,700 for married couples filing jointly, and $9,350 for heads of household.
You MUST also meet the “2% floor”. Which means the total of the expenses you deduct must exceed 2% of your Adjusted Gross Income (AGI), AND only the expenses over your AGI can be deducted.

Once both conditions are met, you can now get your records and receipts! Here are some of the work-related deductions you can actually enjoy this year:

Auto Expenses

You can deduct auto expenses related to traveling between one place of work to another (excluding your home office), attending business meetings, visiting clients, or driving to a temporary work location. However, this doesn’t include expenses associated with traveling to and from work – these are considered personal expenses (I know you’re rolling your left eye right about now…)

How about parking? Well, the cost of parking at your permanent workplace is NOT deductible. However, if you’re attending a meeting at an alternate location, associated expenses can be deducted. The same applies to tolls and gas expenses.

Do you use your car for business purposes? Then you may consider using the standard mileage rate OR actual car-related expenses for the year. There’s one caveat to this: if your car is leased, then whatever method you picked in the first year should be the one used for the remaining term of the lease.

Travel Expenses

Have you incurred any work-related travel expenses? These are also deductible, as long as they were incurred on work-related assignments lasting one year or less. Washing your own laundry while away? Feel free to deduct laundry-related expenses, as well as telephone, baggage, meals and tips as well..

Dues to Professional Societies

Are you part of one, or multiple, professional societies? Then you can deduct related expenses, with the exception of lobbying and political organizations.

Job Search Expenses

Did you travel out-of-town for an interview? Or had to stop by Staples to print out multiple copies of your resume? Expenses associated with looking for (and finding) a job are also deductible.

Work Clothes and Uniforms.

If your job requires you to wear a uniform not suitable for everyday use as a condition of your employment, then the associated cost is deductible. I’m thinking of you, nurses, waitresses, etc….

Union Dues

If you’re paying any union dues or union-related expenses, then those are deductible. EXCEPTION: the portion of these fees paying for sick, accident or death benefits.

Legal Fees

If you incurred any legal fees associated with keeping or doing your job, like lawsuits or legal counsel, these can also be part of your deductions.

Home Office Costs

If you’re working from home for the convenience of your employer (not your own), and your home office is your principal place of business, then associated expenses can be deducted.