UNREIMBURSED EMPLOYEE EXPENSES for Tax Purposes

Generally, you can deduct on Schedule A (Form 1040) unreimbursed employee expenses that are:

1.    Paid or incurred during your tax year,

2.    For carrying on your trade or business of being an employee, and

3.    Ordinary and necessary.

An expense is ordinary if it is common and accepted in your type of trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary.

Examples of unreimbursed employee expenses are listed next. The list is followed by discussions of additional unreimbursed employee expenses.

·       Business bad debt of an employee.

·       Education that is work related. (See chapter 27.)

·       Legal fees related to your job.

·       Licenses and regulatory fees.

·       Malpractice insurance premiums.

·       Medical examinations required by an employer.

·       Occupational taxes.

·       Passport for a business trip.

·       Subscriptions to professional journals and trade magazines related to your work.

·       Travel, transportation, entertainment, and gifts related to your work. (See chapter 26.)

Business Liability Insurance

You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job.

Damages for Breach of Employment Contract

If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer.

Depreciation on Computers

You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is:

1.    For the convenience of your employer, and

2.    Required as a condition of your employment.

Dues to Chambers of Commerce and Professional Societies

You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Similar organizations include:

·       Boards of trade,

·       Business leagues,

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