Seven Types of Employee Expenses That May Be Deductible: Save Some Tax Bucks

Website design By BotEap.comMany employees today are using their own resources to provide certain sundries that help their employer’s business run more efficiently. Unfortunately, these expenses are not reimbursed or employees are afraid to request reimbursement. The good news is that the IRS may allow you to get some tax relief in these circumstances.

Website design By BotEap.comIf you find that you are spending your own money on business-related functions, work-from-home activities, or multiple work sites, then you may be entitled to request a refund from the company or claim a tax deduction for your unreimbursed expenses. Here are some of the more common costs that employees can deduct if they are not funded.

Website design By BotEap.com1. Commercial miles: If you use your own vehicle for any business purpose, keep track of your mileage, you can deduct it at 51 cents per mile (2011 figure). If you commute between job sites during the day, make bank deposits, deliver packages or materials, or drive as an outside vendor, your miles can add up to big tax savings.

Website design By BotEap.com2. Travel expenses: If you must travel overnight for any business-related purpose without being reimbursed, your costs are deductible. Conferences, continuing education trips, off-site training programs, or any other business-related travel costs are deductible. Be sure to save receipts and a log book.

Website design By BotEap.com3. Parking and Tolls: If you’re paying tolls or even certain parking fees as part of your job, you may be able to deduct them. The daily travel tolls are No deductible, but any other toll is. If you work in a downtown area and your employer does not provide on-site parking, your off-site parking fees may be deductible. Save your receipts and inform your tax advisor.

Website design By BotEap.com4. Uniforms: Uniforms are often overlooked. Whether it’s nurse uniforms or steel-toed work boots, they’re a job requirement. While some employers provide them, many others do not. If you find that you are buying items of clothing that are used exclusively at work and would not be used for everyday use, they are probably deductible expenses.

Website design By BotEap.com5. Association Dues: Any fee or fee you pay as part of your employment relationship is deductible. If you pay for a notary public, professional association, recertification, license, or union, you can take a deduction for these items as well.

Website design By BotEap.com6. Meals and entertainment: Many employees these days are asked to work overtime, are “on call,” or commute between job sites. If you incur food costs during these special work events, save your receipts and take your deduction. If you entertain customers or customers during or after business hours, your expenses are also deductible if not reimbursed.

Website design By BotEap.com7.Others: There are a few other expenses that may be deductible for the average employee. Certain business gifts, office supplies for a home office (if you do any work at home), job search expenses, software training, or books may be deductible if paid out of pocket. Keep track and ask your tax advisor if you are eligible.

Website design By BotEap.comSummary: Employees who incur out-of-pocket expenses may be entitled to an income tax deduction for these costs. But if you don’t track your spending or ask your tax advisor, you’ll lose your savings. Most tax preparers and accountants are stressed during tax season and spend very little time asking questions about these expenses unless you provide the information. Don’t lose your savings. It could be enough to pay your tax preparation fees or even fund an IRA. Either way… you win.

Website design By BotEap.comTo discover additional financial and tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to building wealth is knowing where you are and then charting a path that will improve your financial strengths and correct your weaknesses.