Posted by : Daniel Stoica in (Blog, Business Tax, Business Tax Credit, Business Tips, Tax Deductions, Tax Tips) On: March 20th, 2012
Do you often make purchases that are directly related to your job? If you do, you may be able to deduct certain work-related expenses that are not reimbursed by your employer. The following information can help you determine which expenses are deductible as an employee business expense. You must itemize your deductions on IRS Schedule A to in order to qualify.
Here are the expenses that generally qualify for an itemized deduction:
• Business travel away from home
• Business use of your car
• Business meals and entertainment
• Use of your home
• Miscellaneous expenses
If you are going to record business expenses as deductions, you must keep records as proof.
For more information on keeping records for your tax filing, see IRS Publication 552, Recordkeeping for Individuals available on the IRS website at www.irs.gov, or call 1-800-TAX-FORM (800-829-3676).
You should report expenses that are not reimbursed on IRS Form 2106 or IRS Form 2106-EZ and attach it to Form 1040. Deductible expenses are then reported on IRS Schedule A, as a miscellaneous itemized deduction subject to a rule that limits your employee business expenses deduction to the amount that exceeds 2 percent of your adjusted gross income.