Employees may be able to deduct the amount of work-related expenses when they purchase items required for their job and they are not reimbursed for those expenses. Amounts spent on work-required expenses that are over two percent of an employee’s adjusted gross income may be deducted as an employee business expense.

Schedule A is used to claim employee business expense deductions on individual tax returns.  Records such as receipts, cancelled checks, and credit card statements must be kept to prove the expenses that are deducted.

Some costs that employees may be able to deduct include uniforms and other required work clothing that would not be appropriate for everyday use.  Other deductible items include supplies and tools used on the job, business use of a car, business meals and entertainment, business travel away from home, business use of a home office or other workspace, and work-related education. Special rules apply for deducting some employee business expenses.

More information about deductible employee expenses can be found on Publication 529, Miscellaneous Deductions, and Publication 463, Travel, Entertainment, Gift and Car Expenses. (Note the Standard Mileage Rate for 2016 has been changed to $.54 per mile.)

K-12 teachers may be able to deduct up to $250 of expenses such as books, supplies, equipment, and other materials used in their classroom. Educator Expenses are claimed as an adjustment on the tax return instead of as being taken as an itemized deduction.