Here’s who qualifies for the employee business expense deduction

Bank Financing in Houston

Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.

Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses, to take the deduction.

If someone falls into one of these employment categories, they are considered a qualified employee:

• Armed Forces reservists
• Qualified performing artists
• Fee-basis state or local government officials
• Employees with impairment-related work expenses

No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.

Here's what makes something a qualified expense:

• Paid or billed during the tax year
• For carrying on a trade or business of being an employee, and
• Ordinary and necessary

Taxpayers should know there are nondeductible expenses.

There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.

Source: IRS

Alfredo Gaxiola has worked on numerous IRS problem cases and has successfully settled with the IRS to release liens on houses, bank accounts and wages and, if needed, setting a payment installment plan that is not burdensome for the client. He has conducted appeals before the U.S. Tax Court and obtained favorable resolutions in reducing the tax debt of his clients. Mr. Gaxiola served as Treasurer of Camara de Empresarios Latinos, one of the largest and strongest Hispanic organizations in the city of Houston. He has conducted financial and accounting seminars for the Houston Small Business Development Corporation, as well.

Bank Financing in Houston

CPA in Houston, Alfredo Gaxiola in Houston, Certified Public Accountant in Houston, Bookkeeping in Houston, Certified QuickBooks Proadvisor in Houston, QuickBooks Set Up and Training in Houston, Bank Financing in Houston, Business Tax Returns in Houston, Personal Tax Returns in Houston, Quarterly & Monthly Filings in Houston, Financial Statement Preparation in Houston, Form Preparation in Houston, Payroll Preparation in Houston, Reviews Temporary Bookkeeping Services in Houston, Reducing your taxes in Houston, IRS representation in Houston