You shouldn’t have to spend money to make money. However, sometimes you need to purchase items say you can perform your job more effectively. There are different types of work-related expenses such as extra uniforms, electronic gadgets, special tools, and other supplies. While you may be shelling out a lot of cash for these expenses, you may be able to get some cash back at tax time.
The site of expenses are known as employee business expenses and as long as you paid for them without reimbursement, their most likely deductible when you file your tax return. However, you only to itemize your deductions in order to claim employee business expenses. In addition, these expenses need to exceed 2% of your adjusted gross income in order to be deductible.
Some Examples of Deductible Expenses
Depending on your industry, you may encounter different types of deductible expenses. Some of the most common include:
- Specialized tools and equipment for your trade
- Uniforms and work clothes
- Cell phones, computers, or tablets used for work purposes
- Union dues or trade association fees
- Subscriptions to trade journals and professional publications
- Trading costs for improving or maintaining skills
- Expenses related to finding a job within your industry