Many different types of expenses can be claimed on your taxes. These deductions can save you money and help you keep more of what you earn. These include travel costs away from home for work, supplies, and tools bought for work. These expenses can also include uniforms unsuitable for everyday wear, subscriptions to professional journals and trade magazines, legal fees related to your job, and many more.
If you are an employee, then it’s likely that your company reimburses you for business expenses. As a result, the Internal Revenue Service (IRS) requires employers to submit Form 2106-EZ with their employees’ tax returns if they paid more than $600 in business expenses during the year. Some of the expenses that can be written off as business expenses are:
Work-related expenses include things like the cost of traveling between home and work and business trips to other cities or countries. You may be able to claim these costs if you use them exclusively for income-producing purposes and have records to prove it. You will need receipts showing how much was spent will help support your claims when lodging your tax return at the end of each financial year.
If you have a business meeting in another city or country, you can claim expenses for work-related accommodation, clothing, laundry, and dry cleaning if they’re directly related to your job. This means that any costs incurred while traveling on a business meeting or attending a conference or seminar count as legitimate deductions.
Work supplies like tools, journals, uniforms, and stationery can also be written as work expenses. They’re deductible as long as they’re directly related to your job. And you don’t have to itemize them on your taxes. Just keep track of them if the IRS asks for proof that you spent money on work-related items.