Unreimbursed Employee Expenses

The IRS allows you to deduct unreimbursed employee expenses, but only if the amount is over 2% of your adjusted gross income. Additionally, your entire deduction may be subject to the alternative minimum tax. Nevertheless, if you have sizeable unreimbursed employee expenses, this can be a great money saver.

A bit of good news is that you get to add tax preparation fees, investment fees (such as paying someone to manage your money), safe deposit box, and so on to the employee unreimbursed expenses, and then apply the 2% limit. The expense is reported on Schedule A.

Unreimbursed employee expenses include the business use of your home.

Refer to the business expenses page for more details.

Official documentation:

IRS Publication 529 (miscellaneous deductions)
IRS Form 2106

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