Duluth/Gwinnett CPA on Employee Business Expenses
Duluth/Gwinnett CPA on Employee Business Expenses
If you are an employee whose work requires ordinary and necessary expenses like travel away from home, local transit, entertainment, and or business gifts there is a possibility you can deduct these expenses on your return. You will file form 2106 to deduct these expenses on your return, provided they then meet the requirement that they total over 2% of your total AGI (Adjusted Gross Income).
Travel Expenses
A travel expense is defined by an expense that you incur by traveling away from your residence for an employer. Travel expenses can be deducted if they were received as part of a temporary work assignment. However, if the work assignment is indefinite then you are not able to claim the deductions. Please note these expenses are those that are in excess of your normal commuting distance and relate to those trips when you are away on business overnight.
Travel expenses may include:
Cost of transportation to and from your destination for business (car, plane, rail, etc.)
Meals and lodging while away overnight
Taxi fares
Charges for baggage and luggage
Laundry and cleaning charges
More in-depth information travel expenses can be found IRS Publication 463.
Temporary Work Assignment
A temporary work assignment is an assignment where your business there is expected to last for less than a full year.
Indefinite Work Assignment If the work assignment you’ve been given is expected to last for longer than one full year it is titled as indefinite. If your job is not expected to last a year in one place but will eventually surpass a year away from home in multiple locations then it is defined as indefinite as well.
As an Atlanta CPA for decades I have learned that knowing what is a legal tax deduction and what is not is essential. To read more about what determines a valid business tax deduction see http://www.hiscpa.com./business-expenses.html