Un-reimbursed Employee Business Expenses are no longer deductible for individuals: Default your anger to the new tax plan and not your tax professional.

 

You are considered an employee of a company if that company provides you with a form W2 (W2’s coincide with form W4 to estimate tax withholding’s).  Prior to 2018, some expenses that were not reimbursed by the employer were eligible to be included on the Schedule  A (Itemized deductions). 

The standard deduction amounts were doubled for Tax Years 2018-2025 and some of those previously eligible deductions are no longer…. like tax preparation fees (for states conforming to the new tax law).  You should still keep track and provide that information.

     * Note: The law gives a “standard deduction” amount, but there is an opportunity to calculate an itemized amount based on many other items. Then, take the amount that generates the largest and most favorable deduction. 

Changes to the deduction for move-related vehicle expenses

The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax years beginning after Dec. 31, 2017, and goes through Jan. 1, 2026. Thus, during the suspension no deduction is allowed for use of an automobile as part of a move using the mileage rate listed in Notice 2018-03. This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station.

Changes to the deduction for un-reimbursed employee expenses

The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel.

Thus, the business standard mileage rate listed in Notice 2018-03, which was issued before the Tax Cuts and Jobs Act passed, cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026. The IRS issued revised guidance today in Notice 2018-42.

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