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Spending money to bring home a paycheck? Careful record keeping can help you reclaim job-related expenses.

 
Who knew having a job could be so expensive? These days, more and more employers expect their associates to come fully equipped for work - sometimes down to their ink pens. So when, you ask, do you get your money back? The answer may be as close as next April 16.
 
Which deductions qualify and why?
Getting stuck with the bill for work-related expenses can dampen the most loyal employee's enthusiasm for his or her job. But if you keep good records, you can reclaim a great deal of your hard-earned money in deductions.
In general, deductible expenses must be:
  • required by your employer
  • a condition of employment and
  • necessary to perform assigned responsibilities.
As long as those conditions are met, you may deduct the use of a computer or cellular phone. Uniforms and work clothes are also deductible, as long as they are not suitable to wear outside of work.

Other deductible expenses may include the following when required for employment:
  • bonding
  • physical examinations
  • office supplies not provided by your employer
  • professional or trade association dues
  • research, lecture, and writing expenses
  • safety clothes and equipment
  • union dues
  • personal tools and equipment
You must report these and other unreimbursed business expenses on line 20, Schedule A, or on Form 2106.
 
Insurance Premiums: Which Are Deductible, Which Are Not?
Although Schedule A allows for medical and dental deductions, amounts you pay through your employer's tax-sheltered health insurance plan and/or cafeteria plan do not qualify. Other health-care costs that exceed 7.5 percent of your adjusted gross income are deductible on Schedule A.
 
Business Travel May Be Deductible
The expense of your daily commute to work is not deductible. However, if you find that you must travel to secondary or temporary locations - even within your metropolitan area - as part of your job and your employer does not reimburse you for that travel, those expenses may be deductible. Also, travel to and from a second job may be deductible.

Unreimbursed expenses for business travel outside of your metropolitan area may also be deductible. Tami @ 317.345.4182 @ Tami@highbaughtax.com to review the possibilities.
 
The Benefit of Home Office
Let's say you dedicate a percentage of your home regularly and exclusively to office use. Whether you can use it as a deduction depends on whom the situation most conveniences, you or your employer.
  • If your employer chooses to have you work at home, rather than providing you with office space, then it is considered for his or her benefit and thus qualifies as a deduction for you.
  • If, on the other hand, you volunteer to work at home for your own convenience, you may not deduct that percentage of your home's value

Highbaugh Tax - 317.345.4182 - Business Hours 10am - 6pm (EST) Monday thru Friday, limited hours on Saturday. Call for an appointment.


Ready to purchase or sell a home and need some help.  Contact Keya Benberry, 317.270.3311 at Buy with Benberry Realty Group.  Tell her Tami sent you.


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Copyright © 2006 Highbaugh Tax
Last modified: 01/06/08