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Can I Deduct Unreimbursed Business Expenses?

Unreimbursed business expenses refer to the costs employees incur while performing their job duties that are not reimbursed by their employers. Under the current tax laws, individuals may wonder if they can deduct these expenses under the category of miscellaneous deductions.

Understanding Miscellaneous Deductions

Miscellaneous deductions were previously a way to deduct certain expenses, such as unreimbursed business expenses, but following the Tax Cuts and Jobs Act of 2017, many miscellaneous deductions were suspended for tax years 2018 through 2025. This means that, generally, unreimbursed business expenses for employees can no longer be deducted on your federal tax return.

Exceptions for Self-Employed Individuals

If you are self-employed, you may still deduct unreimbursed business expenses directly on your Schedule C form. These can include costs related to travel, supplies, and home office expenses. It's crucial to keep thorough records and receipts for any expenses you wish to claim.

Conclusion

In summary, if you are an employee, you cannot deduct unreimbursed business expenses due to the suspension of miscellaneous deductions. However, self-employed individuals have the opportunity to deduct these expenses as part of their business expenses. Make sure to consult a tax professional for personalized advice.

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