Contributed by KeriC, TaxPro Agent, FreeTaxUSA
In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA) that eliminated many miscellaneous itemized deductions, including unreimbursed employee expenses for most employees.
The following types of employees can still deduct unreimbursed employee expenses on their federal return.
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
Unreimbursed employee expenses that are allowed are calculated on Form 2106 and then reported as an itemized deduction on Schedule A.
Eligible educators can still deduct educator expenses up to $300 ($600 if married filing jointly and both spouses are eligible educators, but not more than $300 each). Educator entered as an adjustment and are not included as unreimbursed employee expenses.
Although most employees won’t qualify to deduct unreimbursed employee expenses on their federal return, some states still do allow the deduction. The states are:
