Phoenix Indian Community - PhoenixIndian.com
| | |
 


 

Business Expenses - Tips for Employees

Money
Contributed by : Mukesh Makker

Share With Your Friends

Add To My Favorite
If you pay for work-related expenses out of your own pocket, you may be able to deduct those costs. In most cases, you can claim allowable expenses if you itemize on IRS Schedule A, Itemized Deductions. You can deduct the amount that is more than two percent of your adjusted gross income. Here are five other facts you should know:

1. Ordinary and Necessary. You can only deduct unreimbursed expenses that are ordinary and necessary to your work as an employee. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is appropriate and helpful to your business.

2. Expense Examples. Some costs that you may be able to deduct include:

Required work clothes or uniforms not appropriate for everyday use.
Supplies and tools you use on the job.
Business use of your car.
Business meals and entertainment.
Business travel away from home.
Business use of your home.
Work-related education.
This list is not all-inclusive. Special rules apply if your employer reimbursed you for your expenses. To learn more call the office or check out Publication 529, Miscellaneous Deductions. You should also refer to Publication 463,Travel, Entertainment, Gift and Car Expenses.

3. Forms to Use. In most cases, you report your expenses on Form 2106 or Form 2106-EZ. After you figure your allowable expenses, you then list the total on Schedule A as a miscellaneous deduction.

4. Educator Expenses. If you are a K-12 teacher, you may be able to deduct up to $250 of certain expenses you pay in 2017. These may include books, supplies, equipment and other materials used in the classroom. Claim this deduction as an adjustment on your return, rather than an itemized deduction. For more on this topic, please call.

5. Keep Records. You must keep records to prove the expenses you deduct so that you can prepare a complete and accurate income tax return. The law doesn't require any special form of records; however, you should keep all receipts, canceled checks or other proof of payment, and any other records to support any deductions or credits you claim. If you file a claim for refund, you must be able to prove by your records that you have overpaid your tax. For what records to keep, see Publication 17, Your Federal Income Tax.

Please call the office if you have any questions about employee expenses or need help setting up a record keeping system to document your expenses.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: www.taxmaker.com

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

View All Articles

Featured Contributors


Vasudha Sharma

Aayushi Manish

Vivek Wadhwa
Vivek Wadhwa

Anu Peshawaria

Darshan Goswami

Rima Arora
Rima Arora

Praveen Nair

Tahmina Watson

Ananya Kiran
Ananya Kiran

Latest Articles

Pritam's music has always been my favourite says Kartik Aaryan by Staff
Choreographer Sandip Soparrkar joins hands with Letsallhelp.org and adopts 2000 girls for their hygiene requirements by Staff
'Drame na De' Girish Nakod Feat Muhfaad & Ankita Thakur released by Vsquare Music on Valentine's Day! by Staff
First Look: NRI Diary starring Aman Verma by Staff
Gully boy singer Jasleen Royal finds a fan in Tapasee Pannu by Staff
View All Articles