The Basics of Claiming Non-Reimbursed Work Related Purchases
If you are employed, it is not advisable to take on work-related expenses which your employer should pay. You should not pay them, and your employer should reimburse you for the expense in question. However, should you find yourself in this position, know that you may be able to deduct work-related purchases from your taxes.
Things to Know About Claiming Non-Reimbursed Work Expenses
- Non-reimbursed work expenses are deductible much the same as if you were self-employed. Each expense you incur is subject to the same tax regulations as a business expense for someone who is self-employed.
- The expenses must be ordinary, necessary, and reasonable. There are special rules for other expenses, but they must apply in maintaining or improving the skills in your current job.
- Deductions for an employee’s related job expenses are limited. You can only claim the expense if it is more than 2-percent of your adjusted gross income. Anything below that, you cannot claim. The more your adjusted gross income is, the lower you can claim. Thus, it is recommended that you avoid making purchases for which your employer will not reimburse you.
To help you avoid claiming expenses for non-reimbursed work related purchases, it is best to review your employer’s reimbursement policy. Always be sure to claim from your employer any expense that you incur for your job. If you fail to do so, you will not be allowed to claim it as a deduction. Employees should never pay out of pocket for something which is necessary on the job.
Image credit: Andres Rueda
