Save Some Tax Dollars – 7 Types Of Employee Expenses That May Be Deductible

Many employees today are using their own resources to provide certain miscellaneous items that help their employer’s business run more efficiently. Unfortunately these expenses aren’t being reimbursed or employees are afraid to ask for reimbursement. The good news is that the IRS may allow you to get some tax relief in these circumstances.

If you find that you’re spending your own money at business related functions, home-work activities or multiple job sites, then you may be entitled to request a company reimbursement or claim a tax deduction for your un-reimbursed expenses. Here are some of the most common costs that employees may be able to deduct if not reimbursed.

Be sure to evaluate this content thoroughly, the issue and the methods have some versions. 1. Business Miles: If you use your own vehicle for any business purposes, keep track of you mileage, you may be able to deduct them at fifty-one cents per mile (2011 figure). If you travel between job sites during the day, make bank deposits, deliver packages or materials or drive as an outside sales person, your miles can add up to a large tax savings.

2. Travel Expenses: If you’re required to travel overnight for any business related purpose without being reimbursed, your costs are deductible. Conferences, continuing education trips, off site training programs or whatever other business related trip costs are deductible. Make sure to keep receipts and a log book.

3. Parking and Tolls: If you’re paying tolls or even certain parking fees as part of your work, you may be able to deduct them. Daily commuting tolls aren’t deductible, but any other tolls are. If you work in a downtown area and your employer doesn’t provide on-site parking, your parking fees for off-site parking may be deductible. Keep your receipts and let your tax adviser know.

4. Uniforms: Uniforms are often overlooked. Whether it’s nurse uniforms or steel-toed work boots, they’re a job requirement. While some employers provide them, many others don’t. If you find that you’re purchasing clothing items that are used exclusively at your job and wouldn’t be used for everyday wear, they’re probably deductible expenses.

5. Association Dues: Any fees or dues that you pay as part of your work relationship, are deductible. If you pay for notary public, professional association, re-certification, licensing or union dues, you can take a deduction for these items as well.

6. Meals and Entertainment: Many employees these days are being asked to work overtime, are “on call” or travel between job sites. If you incur meal costs during these special work events, keep receipts and take your deduction. If you entertain customers or clients during or after hours, your expenses are also deductible if they’re not reimbursed.

7. Others: There are a few other expenses that can be deductible to an average employee. Certain business gifts, office supplies for a home office (if you do any work at home), job seeking expenses, software training or books may be deductible if you pay for them out of your own pocket. Keep track and ask your tax adviser if you’re eligible.

Summary: Employees that incur expenses out of their own pocket may be entitled to an income tax deduction for these costs. But if you don’t keep track of your expenses or ask your tax adviser, you’ll lose the savings. Most tax preparers and accountants are stressed during tax season and spend very little time asking questions about these expenses unless you offer the information. Do not lose out on your savings. It could be enough to pay for your tax preparation fees or even enough to fund an IRA. Either way… You win.

To discover additional financial and income tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to creating wealth is knowing where you’re and then charting a path that will enhance your financial strengths and correct your weaknesses.

About the Author:

Keith Maderer is a financial expert and has been a investment and tax adviser in the Western New York area for over thirty years. He’s the owner of SENIOR Financial and Tax Associates and the founder of the Maderer Foundation, a private scholarship program.

Keith is also the author of “How To Get Your College Education For Less”. Available on Amazon.com – ISBN No: 978-1-4538-2053-7.

You can get your FREE Wealth Expansion Kit, or check out his blog by visiting http://www.sftaweb.com