Tax Guide |
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Along with the expenses we've already mentioned, you can deduct almost any other ordinary and necessary business expense you have as an employee. Some of the more common ones are discussed below.
Computers. You can claim a first-year expensing election for your home computer if you use it more than 50 percent for business; otherwise, or for later years, you may depreciate the business percentage of the cost.
Dues. You can deduct membership fees and dues paid to professional societies, the chamber of commerce, boards of trade, business leagues, civic or public service organizations, real estate boards, or trade associations if membership helps you in your job. However, you can't deduct any portion of the dues that is used for lobbying or political activities. Your organization should tell you the percentage of your dues, if any, that are used for this purpose. Dues to airline clubs, social clubs, or country clubs are not deductible.
Office furniture used at home. Even if you can't claim the home office deduction, you can expense or depreciate the cost of a desk, chair, file cabinets, lighting, etc. you use when you work at home, provided you meet the usual requirements for business deductions.
Subscriptions. You can deduct the cost of professional, trade, or business publications and newspapers.
Telephones. The installation and monthly charges for the first telephone line you bring into your home is never deductible. But if you have a second line for business, or you can determine the cost of specific long-distance or local charges for business calls, you can deduct those amounts even if you don't qualify for the home office deduction.
Work clothes and uniforms. These are deductible only if you must wear certain items as a condition of your employment and they are not suitable for normal wear. For example, firefighters, delivery people, waiters, health care workers, and others required to wear specific uniforms may claim the deduction, but not those who are merely required to conform to a dress code, or to dress in a certain style or color. If the cost of your clothing qualifies, so does the cost of upkeep and cleaning. You can also deduct the cost of protective clothing or items like hard-hats, safety glasses, work gloves, steel-toed boots, etc.
Other deductions. Here are a few more potentially deductible items that are often overlooked:
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