Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-23-2007, 10:23 AM
Junior Member
 
Join Date: Feb 2007
Posts: 10
How can I deduct unreimbursed job related expenses on my tax return?

I am an unioned electrician working in NYC for the State Agency. I incurr about $3,500 to $4,000 in expenses for Union dues, boots, special clothing, tools and continuing education classes.

It is important for me to incur these costs as it is part of my job requirement. How can I deduct these expenses?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-24-2007, 11:38 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
As such, the IRS allows these jobs related expenses to be deducted. However, these expenses are subject to the 2% AGI floor. Firstly, lets talk about your job related expenses. Clearly, the expenese you mentioned appear to be reasonable especially in your field.

Employee Business expenses:
The union dues are usually listed on your W-2's, and the bulk of the expenses usually constitute the Union dues. Then the special clothing and boots both very common, along with any special tools required for your job, and additional training and continuing education expenses to gain your professional designation. Please remember to reduce any expenses that are reimbursed by the NYC State Agency. Lets say the total amount of your expenses is $4,000.

2% AGI Floor:
Your total employee expenses are reported on Schedule A of the the Itemized deduction schedule. But, they are subject to a 2% floor. In other words, lets assume your total Adjusted gross income (AGI) as reported on Line 37 of the Tax Form 1040 page 1 is $120,000. Then the IRS rules state that your total employee business expenses must exceed 2% of $120,000, which translates into $2,400.

Thus, the total amount that you can deduct on you Schedule A would be $4,000 less $2,400. This means that the most you can deduct would be between $1,600.

Therefore, take the time to get all your records in order, and save your all receipts to gain the maximum deduction possible.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Last edited by TaxGuru : 02-24-2007 at 11:40 AM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning