Here's how to claim work expenses when filing your taxes (2024)

The way we work has shifted significantly over the past two years -- and if you were part of the Great Resignation, you might have even started your own business or opted for a freelance or a remote position. More people have had to navigate working from home and the workplace expenses that come with it. And currently, the best-known employment-related tax deduction -- for home office expenses -- is reserved for those who are both self-employed and have a dedicated home space for working.

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  • Everything you need to know about when to file your 2021 tax return with the IRS
  • Will you owe taxes on your unemployment benefits in 2022?

Still, there are a handful of other work-related expenses that both corporate employees and the self-employed may be eligible to claim ontheir taxesthis season. Remember: For most taxpayers, the deadline to submit your 2021 federal tax return or request for an extension is Monday, Apr. 18, 2022.

This story is part of Taxes 2022, CNET's coverage of the best tax software and everything else you need to get your return filed quickly, accurately and on-time.

Here's an overview of work expenses and deductions on your taxes.

Claiming work expenses: First, choose a deduction

Before you start going through every line item of every receipt, you may want to save yourself the trouble and figure out which you'll take: the standard deduction or the itemized deduction.

Standard deduction: The standard deduction is an all-encompassing flat rate, no questions asked. For tax year 2021, the flat rate is $12,550 for single filers and those married filing separately. The rate is $25,100 for married filing jointly. Taking this route is much easier than itemizing.

Itemized deduction: If you want to claim work expenses, medical payments, charitable contributions or other expenses, you'll use the itemized deduction. It's more time-consuming than the standard deduction -- and you'll need proof of the expenses you wish to deduct.

If you're going to claim and itemize your work expenses, you'll need to complete Schedule A of Form 1040. You need to have sufficient proof for each itemized expense, which means tracking down receipts. If your standard deduction is greater than the sum of your itemized deductions, save yourself the trouble and take the flat rate.

Read more:

Common tax deductions to claim

Before you start adding up all the line-items, make sure you know what's covered and what isn't. Here are some of the most common deductions for folks working from home.

1. Home office deduction

The home office deduction may be the largest deduction available if you're self-employed. If you work 100% remotely as a W-2 employee, you do not qualify for this deduction. The other main requirement is that the space be reserved for and dedicated entirely to your work.

"Can you deduct a home office if you work at your kitchen table? Unfortunately, no," says Lisa Greene-Lewis, CPA, and tax expert with TurboTax said. "You not only have to be self-employed -- but have a dedicated space in your home that is exclusively related to your business. You can't deduct the space at your kitchen table if your family also eats dinner there."

If you have a dedicated workspace at home, you can use the IRSregular method or simplified option, though you can't use a combination of them in a single tax year. Some things that qualify for home office deductions:

  • Insurance:You can deduct a percentage of your home insurance that covers the business space in your home.
  • Utilities: Expenses for utilities, like electricity and gas, can be deducted -- but only the percentage used in your home office.
  • Depreciation: If you own your home, you can deduct the cost of wear and tear on the portion used exclusively for business.

All of these calculations are based on the percentage of your home that you use for business. To find the percentage, compare the size of space you use for business to that of your entire home, and then apply the percentage to the specific expenses. For instance, if your home is 1,800 square feet total, and your home office measures 300 square feet, your home office deductions could be applied at a rate of 16%.

Greene-Lewis says that if you take the simplified option, you can deduct $5 per square foot, up to 300 square feet, or $1,500 total. This would be an alternative to calculating the various individual home expenses.

2. Travel

If you're self-employed or own your own business, regular commutes from your home to work are considered non-deductible personal expenses. If you have to commute between multiple locations or travel for work, however, some of those costs may be deductible. Flights, hotel rooms, rental cars, meals and tips for service are all considered travel expenses, if they're business-related. If a passport is required for your travel, you can claim that as well.

In the past, mileage accrued while driving your own car for business travel was an expense you could claim on your taxes -- but theTax Cuts and Jobs Actof 2017 eliminated that for employees. The self-employed and business owners, however, are still eligible for this deduction.

3. Work uniform

If you have to buy clothes that you only wear for work, some individuals may be able to write off the cost. For example, if you're a qualifying performing artist, you may be able to deduct the cost of costumes or other theatrical clothing that you can't wear everyday. You must fall under one of afew specific categories in order to claim this deduction, though, due to the TCJA tax changes.

4. Continuing education and certifications

If you're self-employed, or work for an employer and fall into one of these IRS categories, you may be able to can claim the enrollment cost of any required continuing education courses, classes or certifications. You may also be able to deduct professional organization dues and fees -- as long as the organization isn't political.

If you're a teacher, the Teacher Education Deduction lets you claim up to $250 of out-of-pocket costs related to teaching supplies. And Green-Lewis says if you and your partner are both teachers, you both can claim the deduction.

5. Supplies

If you own your own business, you can deduct the cost of some business supplies. And the deduction threshold is generous.

"Self-employed business owners can deduct up to $1,020,000 for qualified business equipment like computers, printers and office furniture," Greene-Lewis says.

Your tax questions, answered:

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Here's how to claim work expenses when filing your taxes (2024)

FAQs

How to claim job expenses on taxes? ›

Certain workers must use Form 2106 to calculate deductible unreimbursed employee expenses and report them either as an "above-the-line" deduction on Schedule 1 or as an itemized deduction on Schedule A, depending on their situation.

How much of work expenses are tax deductible? ›

However, with tax reform, all miscellaneous “2%” expenses, including unreimbursed employee expenses are not allowed between 2018 and 2025. Expenses such as union dues, work-related business travel, or professional organization dues are no longer deductible, even if the employee can itemize deductions.

What expenses can you claim on taxes? ›

You can deduct these expenses whether you take the standard deduction or itemize:
  • Alimony payments.
  • Business use of your car.
  • Business use of your home.
  • Money you put in an IRA.
  • Money you put in health savings accounts.
  • Penalties on early withdrawals from savings.
  • Student loan interest.
  • Teacher expenses.
Jun 14, 2024

What job related expenses Cannot be deducted from your taxes? ›

Examples of Different Expenses You Cannot Deduct:

Broker's commissions that you paid in connection with your IRA or other investment property. Political contributions. Legal expenses for personal matters that do not produce taxable income. Lost or misplaced cash or property.

What deduction can I claim without receipts? ›

What does the IRS allow you to deduct (or “write off”) without receipts?
  • Self-employment taxes. ...
  • Home office expenses. ...
  • Self-employed health insurance premiums. ...
  • Self-employed retirement plan contributions. ...
  • Vehicle expenses. ...
  • Cell phone expenses.
May 31, 2024

How much can I claim for work-related expenses? ›

As a general rule you can claim home office equipment such as computers up to $300 or a decline in value for items costing $300 or more. You can also claim your phone bill if it is used in part for work related expenses.

How to put expenses on a tax return? ›

Although many common expenses are deducted on designated lines of the tax schedule, some expenses may not fit into a particular category. Taxpayers can deduct these as “other” expenses. A breakdown of “other” expenses must be listed on line 48 of Form 1040 Schedule C. The total is then entered on line 27.

Can you write-off work clothes? ›

Only clothing that's a requirement from your employer and that can't be worn outside work qualifies as a work clothes deduction. A tax deduction calculator can help you check if your clothes can be counted as a write-off. The IRS considers clothes that are everyday wear as nondeductible.

How to get $7000 tax refund? ›

Requirements to receive up to $7,000 for the Earned Income Tax Credit refund (EITC)
  1. Have worked and earned income under $63,398.
  2. Have investment income below $11,000 in the tax year 2023.
  3. Have a valid Social Security number by the due date of your 2023 return (including extensions)
Apr 12, 2024

How to get a $10,000 tax refund? ›

How do I get a 10,000 tax refund? You could end up with a $10,000 tax refund if you've paid significantly more tax payments than you owe at the end of the year.

How can I increase my tax refund? ›

4 ways to increase your tax refund come tax time
  1. Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
  2. Explore tax credits. Tax credits are a valuable source of tax savings. ...
  3. Make use of tax deductions. ...
  4. Take year-end tax moves.

How to write off work expenses? ›

If you're going to claim and itemize your work expenses, you'll need to complete Schedule A of Form 1040. You need to have sufficient proof for each itemized expense, which means tracking down receipts.

What expense is not tax deductible? ›

Non-deductible business expenses are those that are not directly related to your business. This includes things like meals and entertainment, car payments, and home office deductions. While these expenses may be necessary for your business, they cannot be written off on your taxes.

What work supplies are tax deductible? ›

You can fully deduct small tools with a useful life of less than one year. Deduct them the year you buy them. However, if the tools have a useful life of more than one year, you must depreciate them.

How to write-off job search expenses on taxes? ›

Writing Off Your Job Hunting Expenses

In order to claim your job hunting expenses on your tax return, you'll need to itemize your deductions. That means you'll need to complete Schedule A and attach the form when you're ready to file your taxes. Job hunting expenses fall under the category of miscellaneous expenses.

Can a W-2 employee write-off expenses? ›

Most unreimbursed employee expenses can't be claimed by W-2 employees on their federal income taxes. Ask your employer if they would reimburse you for those expenses because those expenses are usually deductible to them.

Can I deduct self employment expenses? ›

You can calculate a deduction for a home office and a vehicle used for business purposes. Meals with clients and business travel are deductible, but meals included with entertainment may not be. Premiums for insurance that you pay for to protect your business and health insurance are legitimate deductions.

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