Posted by McCool's Tax Service

Employee or Job Tax Deductions

Employee or Job Tax Deductions

The Tax Cuts and Jobs Act came with many effects, one of which was removing the business expense for unreimbursed employees till the year 2026. As a result, workers can no longer bring down their taxable income using employer business expense deduction. 


Deductions an Employee can Claim 

The boost in standard deduction led to the elimination or replacement of many tax deductions. The idea behind the increase was to make it possible for taxpayers to claim deductions and get their taxable income down. This led to a change in how people can claim itemized deductions.


Nondeductible Employee Expenses

Some deductions related to jobs or employees cannot affect your 2020 tax return with the current situation, even though these will return in 2026. Should there be any of these expenses while you were employed, it is essential to discuss with your employer to see if you can be reimbursed.

  • Appraisal fee to take care of charitable contribution or casualty loss

  • Losses and casualty from a property that was essential in the service of an employee

  • Office rent and clerical help for investment purposes

  • A convenience fee for debit or credit card

  • Home computer depreciation applicable to investment 

  • Dividends and interest collection fees

  • Expenses for a hobby which is not more than income hobby

  • Fees and expenses for investment 

  • Income repayment

  • Social security benefits repayment 

  • Tax advice or taxable income legal fees.

  • Roth or Traditional IRA loss after you get all the amount

  • The loss that comes from deposits or bankruptcy of the financial firm

All the above are primarily in producing gross income, to help take care of the property for producing the said income, and to estimate a tax refund.

Besides, here are job-related expenses that could not be deducted in past years and will still be non-deductible in subsequent years:


Expenses for commuting: there is no provision to deduct transport expenses from your place to your workplace. However, there is an exception to remove the extra cost of transporting tools, equipment, and other accessories to your workplace. Such expenses could be renting a truck. Self-employed folks are opportune to deduct mileage should they travel to their place of work. 


Expenses for Lobbying: All expenses related to lobbying activities cannot be deducted 

For a tax-exempt organization, any part of the fees or any other amount you used to pay the firm, which was used to service lobbying expenses that are nondeductible, cannot be deducted. A few exceptions  to this exist, which are:

  • Provision to deduct necessary and ordinary lobbying expense to sustain your business or trade

  • Expenses for anything you do to influence the legislation of local council or other governing body 

  • There is the opportunity to deduct the expense for a trade or lobbying business for another party for people in the lobbying profession. You, however, cannot deduct payments from the other partying.

Expenses for Meal: There is no provision to deduct lunch costs during late hours or with other workers. This, however, does not hold when you are on a trip for business purposes. 

Non-Deductible Expenses: Employees who enjoy the following privileges from their employer will classify it as taxable income. As a result, such expenses cannot be deducted. A few of them are:

  • Expenses for commuting

  • Contributions to politics

  • Membership fees for a fitness class

  • Expenses for a health spa

  • Meals for late hours

  • Expenses for campaign 

  • Commissions for the broker

  • Lunch with fellow workers except while on a trip

  • Fees for professional accreditation

  • Premiums for life insurance

  • Club dues

  • Personal legal fees

  • Fines like speeding tickets or parking fees

  • Car loan interests

  • Expenses for burial and funeral

  • Repair for home, security, and insurance 

  • License fee, for instance, marriage.

  • Misplaced/lost cash or property 

  • Contribution for relief funds

  • Residential telephone lines

  • Unpaid wages or vacation time lost.

  • Expenses related to being present at a stockholder’s meeting

Rather than bothering yourself on the nature of deductions you qualify to claim, you can explore the employee tax deduction you are eligible for.


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