Unofficial Tax Guide

Many working Americans are required to pay a number of work-related expenses. These expenses may include, but are not limited to, transportation expenses related to business, uniforms, tools or other needed work materials. The majority of employers who require these items are not always required by law to reimburse their employees for such purchases. However, employees who are not reimbursed for purchasing merchandise or services that are related to their job are eligible to receive tax deductions for the purchases they have made.

The IRS requires that all work-related expenses that a taxpayer claims must exceed two percent of the adjusted gross income of the taxpayer. For work-related purchases to qualify as tax deductions, the taxpayer needs to have proof that the items or services were paid for and used for only business use. This is where many taxpayers are ineligible to receive a tax deduction on work-related purchases because they fall to keep the necessary documents. Taxpayers who are interested in claiming their work-related expenses as a tax deduction are encouraged to plan ahead. This planning may include developing an effective filing or storage system for all receipts or other important work-related documents.

The majority of work-related expenses must to be itemized on a “Schedule A” form. A Schedule A form can be obtained online at taxengine.com, by using a tax software program, or wherever traditional federal and state tax forms are available. A Schedule A form can be used to determine whether a taxpayer will meet the two percent requirement imposed by the IRS. It is not uncommon for a taxpayer to be close to the percentage for deducting employee related expenses. A mistake that many taxpayers make when falling short of the guidelines for claiming work-related purchases is that they just give up while there is a long list of work-related tax deductions that the traditional taxpayer does not even know about.

One of the most overlooked work-related expenses that are tax deductible are those related to finding a job. It is possible for job seekers to use the money that they spent searching for a new job as a tax deduction. Common job search expenses may include the costs of having a professional resume prepared, the cost of mailing or faxing the resume, the cost of telephone calls to and from potential employers, and the travel to and from job interviews.

There are a large amount of businesses who are now allowing their employees to work-from-home. Individuals who work for a traditional company, but from the comfort of their own home are eligible to use their home office equipment as a tax deduction. The home office equipment may include a computer, telephone, fax machine, printer, copy machine, or other equipment that a business may require their home-based employees to have.

Individuals who are required to make a purchase due to the nature of their work should either be reimbursed by their employer or claim the expense as a deduction on a federal income tax return. Working taxpayers are entitled to a full or partial reimbursement for work-related expenses; therefore, there is no reason why a taxpayer should be letting money that they earned slip through their hands.