1. Carpooling to Work
According to IRS Publication 463, you can claim a deduction or credit for the costs of getting to and from work in any of the following ways: car, bus, subway, taxi, ferry, train or bike. The commuting rule applies even to employees who work at home. If your employer requires you to maintain a home office for business use, you can deduct your daily transportation costs between the home and your regular workplace.
2. Home Computers and Internet Connection
If you're self-employed and work from home (such as a freelancer or consultant) you can claim a deduction for the business use of your personal computer or other equipment. And if you use your computer or laptop in part for personal reasons, you can claim a deduction only for the business portion of your monthly Internet connection charges.
3. Uniforms and Work Clothes
If you are required to wear a uniform or other special clothes while working, you may be able to deduct the cost of these items. However, you must be able to prove that the clothes are not for your daily use by showing that there is no chance they can be worn in public and the employer requires you to wear them while working.
4. Employee Business Expenses and Reimbursements
If you work (either full-time or part-time), any unreimbursed business expenses you incur related to your job are deductible. The deduction for unreimbursed employee expenses is claimed as an itemized deduction on Schedule A, and there are limitations for certain employees or types of expenses.
5. Moving Expenses for Job Changes
If you move because of a new job, you can deduct certain expenses. You can deduct the cost of moving yourself, your household items and travel to your new job location. If you drive a car in performing this service for which you received free transportation, you can deduct any expenses such as gasoline and oil that are not included in the value of the free transportation.
6. Employee Home Office Deduction
If you are self-employed and work at home, you may be able to claim a deduction for some of your household expenses. You can deduct the cost of using part of your home exclusively and regularly as the principal place of business for any trade or business in which you engage. For more information on Home Office Deductions please refer here.
7. Work-Related Education Expenses
If you work full time, part time, or are self-employed, you can deduct any education expenses that relate to your present work. This deduction is taken as an adjustment to income, which means it's subtracted from your taxable income rather than your adjusted gross income.
8. Job Hunting Expenses by You or Spouse
If you are looking for a job in the same line of work as your current job, you can deduct any costs of finding that new job, including travel and related expenses, such as the cost of printing resumes. This deduction is taken as an adjustment to income, which means it's subtracted from your taxable income rather than your adjusted gross income.
9. Business Travel Expenses
If you are traveling out of town for business purposes, you can deduct certain travel costs; these include transportation, lodging and 50% of your food costs. You can also deduct taxi fares or other costs of transportation between the airport or station and your hotel.
10. Truck and Car Expenses
If you use your car in your work, you may be able to deduct either the standard mileage rate (54 cents per mile in 2012) or actual vehicle expenses, such as gas and oil. If you use your car for both business and personal purposes, you must divide your expenses between business and personal use (actual method) on Form 2106 or Form 2106-EZ.
For further information contact us at 1-510-825-7563 or join our next FREE Webinar.
