Business expenses for W-2 employees
$0
Can W-2 Employees Deduct Business Expenses?
Short answer: No: employees can't deduct business costs on their federal return; only self-employed income can absorb expenses.
W-2 employees can't deduct unreimbursed job expenses on a federal return through at least 2026 (the miscellaneous itemized deduction is gone); ask your employer for an accountable-plan reimbursement instead.
Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.
Business expenses for W-2 employees
$0
Remote Workers / Freelancers / Consultants
No: employees can't deduct business costs on their federal return; only self-employed income can absorb expenses.
Business justification
No: employees can't deduct business costs on their federal return; only self-employed income can absorb expenses. W-2 employees can't deduct unreimbursed job expenses on a federal return through at least 2026 (the miscellaneous itemized deduction is gone); ask your employer for an accountable-plan reimbursement instead.
Category
- Write-Offs by Job