Many tax payers think that only the self employed can deduct business expenses. Such is not the case. Employees can deduct some of their unreimbursed business expenses as well. Two criteria must be fulfilled in order to deduct these expenses.
First, the total of itemized deductions must be greater than the standard deduct. In addition, the expenses must be greater than 2% of your adjusted gross income. These expenses must be considered “ordinary and necessary” in order to be deducted.
A typical business expense is auto and travel expenses. Detailed records and receipts should be kept. Other expenses that may be deducted include home office costs, dues to professional societies, job search expenses in your current occupation, as well as a multitude of other deductions.
It is always best to sit down with a tax professional. Tax preparation fees can be deducted during the year incurred.
AllRight Consulting & Tax, LLC