If you are an employee, you may be able to deduct your un-reimbursed work-related expenses as an itemized deduction on Schedule A. Employee business expenses are subject to the 2% of AGI limitation (see below). You can deduct un-reimbursed employee business expenses incurred in the normal course of carrying out your responsibilities as an employee.
You can deduct un-reimbursed travel expenses that you incur as an employee if you temporarily travel away from your tax home for your job. These expenses include transportation, car expenses, lodging and meals (meals are only allowed if you are traveling overnight). You can also deduct your job-related education expenses. You claim your employee business expenses on line 21 of Schedule A.
Although commuting costs (travel between home and work) are not deductible, some local transportation expenses are. Deductible local transportation expenses include the ordinary and necessary expenses of going from one workplace to another. If you have an office in your home that you use as your principal place of business for your employer, you may deduct the cost of traveling between your home office and work places associated with your employment.
You may deduct the cost of traveling between your residence and a temporary work location outside of the metropolitan area where you live and normally work. If you have one or more regular work locations away from your residence, you may also deduct the cost of going between your residence and a temporary work location within your metropolitan area.
Where is your tax home?
In determining the deductibility of travel expenses when you travel outside your general work area, the location of your tax home must first be established. Your tax home is your main place of business or work, regardless of where you maintain your family home. The following factors are used to determine your main place of business or work:
- The total time ordinarily spent working in each area.
- The level of business activity in each area.
- Whether the income from each place is significant or insignificant.
You are considered away from your tax home if you are required pengeluaran sgp to be away from the general area of your tax home for longer than an ordinary workday, and you need to get sleep or rest.
What expenses are deductible?
If you are on a temporary assignment or job away from your tax home, your job expenses may or may not be deductible. A temporary assignment is one that is expected to last for one year or less, and does in fact last for one year or less. The following factors are used to determine if traveling expenses to that temporary assignment or job are deductible or not:
- If the assignment has a fixed ending date (one year or less), the expenses are deductible.
- If the assignment or job lasts or is expected to last indefinitely, the expenses are not deductible.