Did you know that you may be eligible to deduct certain work-related expenses on your tax return? Many costs to workers are job requirements but not reimbursed by employers; in most cases, these expenses can be deducted. However, which expenses, exactly, are eligible for those deductions varies by industry.
- Clergy do not have to include parsonage or housing allowances as income for the purpose of calculating the income tax itself; however, that allowance is included in figuring the clergy-person’s self-employment tax.
- Licensed, in-home day care centers can deduct a portion of home maintenance/upkeep costs depending on the amount of time various rooms are used routinely for the day care and the number of square feet routinely used for day care.
- Entertainment professionals can deduct both promotional expenses related to their work as well as job-seeking costs.
While some expense categories (auto travel, uniforms, continuing education, professional organization dues, etc.) do tend to apply across the board, it’s always best to consult a professional before making any occupational expense deduction on your tax return. Taxation Solutions, Inc. is available to answer any questions you have related to tax filing and deductions as well as other tax problems. Here in Virginia Beach and the region, you can’t go wrong when you call on our pros!