Deducting Employee Business Expenses
(Revised November 2012)

If you are an employee, you may be entitled to deductions for expenses relating to your job. This category of expenses is usually called employee business expenses and is deductible as miscellaneous itemized deductions. These expenses are grouped with other miscellaneous deductions (e.g. investment expenses, tax preparation fees) and are deductible to the extent that the total expenses exceed 2% of your gross income. Examples of employee business expenses are un-reimbursed job related automobile, travel and entertainment expenses. In some cases home office expenses and even computer expenses may be deductible as employee business expenses; however, as noted elsewhere in other sections of this FAQ, there have been significant changes to the rules concerning home office expenses. 

Employee business expenses are generally deductible, if they meet two requirements:

  1. They are not reimbursable by your employer.
  2. The expenses meet the 'convenience of employer test'.

The 'convenience of employer test' may sound easy, but it is not.  This topic is very complex, and you need professional guidance on the details. To contact us, use the link on the left hand side of this page.

FAQ Menu

To contact us or return to a different page, use the links on the left hand side of this page.