$Missed Deductions

Can I deduct unreimbursed employee expenses?

Commonly Missedintermediate3 answers · 4 min readUpdated February 28, 2026

Quick Answer

Generally no — the Tax Cuts and Jobs Act eliminated the deduction for unreimbursed employee expenses for most workers through 2025. However, certain professions (military reservists, performing artists, fee-basis officials) can still claim these deductions. The average missed deduction was $3,200 before elimination.

Best Answer

RK

Robert Kim, Tax Return Analyst

Best for traditional employees who work for a company and receive a W-2

Top Answer

What happened to unreimbursed employee expenses?


For tax years 2018-2025, the Tax Cuts and Jobs Act suspended the deduction for unreimbursed employee expenses for most employees. This means you can't deduct work-related expenses like:


  • Uniforms and work clothing
  • Tools and supplies
  • Professional development and training
  • Home office expenses (if you're an employee, not self-employed)
  • Business travel not reimbursed by your employer
  • Professional memberships and subscriptions

  • Example: What this costs you


    Before 2018, if you spent $4,000 annually on unreimbursed work expenses and were in the 22% tax bracket, you could deduct the amount over 2% of your AGI. For someone earning $75,000:


  • 2% of $75,000 = $1,500 threshold
  • Deductible amount: $4,000 - $1,500 = $2,500
  • Tax savings: $2,500 × 22% = $550

  • Now, you get zero tax benefit from these expenses.


    Who can still deduct unreimbursed expenses


    Certain employees retain this deduction:


  • Armed Forces reservists — travel expenses over 100 miles from home
  • Qualified performing artists — with AGI under $16,000 and meeting specific criteria
  • Fee-basis state or local government officials — expenses related to their position
  • Employees with work-related disabilities — for disability-related work expenses

  • What you should do


    1. Talk to your employer about reimbursement programs or expense accounts

    2. Keep detailed records — the deduction returns in 2026 unless Congress extends the suspension

    3. Consider if you're actually self-employed — 1099 contractors can still deduct business expenses


    [Use our Return Scanner](return-scanner) to identify other deductions you might be missing while this one is suspended.


    Key takeaway: Most employees can't deduct unreimbursed work expenses through 2025, costing the average affected taxpayer $550-$1,200 annually in lost tax benefits.

    *Sources: [IRS Publication 529](https://www.irs.gov/pub/irs-pdf/p529.pdf), [Tax Cuts and Jobs Act Section 11045]*

    Key Takeaway: Most employees lost this valuable deduction through 2025, but it returns in 2026 unless Congress acts.

    Unreimbursed employee expense rules by worker type

    Worker TypeCan Deduct?Where ReportedLimitations
    Regular W-2 employeeNo (2018-2025)Not deductibleSuspended by TCJA
    Military reservistYesForm 1040, Schedule 1100+ miles from home only
    Performing artistYesForm 1040, Schedule 1Must meet 4 strict criteria
    1099 contractorYesSchedule CBusiness expense rules apply

    More Perspectives

    DF

    Diana Flores, Tax Credits & Amendments Specialist

    Best for Armed Forces reservists who travel for duty

    Military reservists: You still get this deduction


    As an Armed Forces reservist, you can deduct unreimbursed travel expenses when you travel more than 100 miles from home for reserve duty. This deduction survived tax reform and appears on Form 1040 as an "above-the-line" deduction.


    What you can deduct


  • Transportation costs — mileage at $0.67/mile (2026 rate) or actual vehicle expenses
  • Lodging — reasonable hotel/motel costs
  • Meals — 50% of meal expenses while away from home overnight

  • Example calculation


    Suppose you travel 200 miles each way (400 total) for weekend drill once monthly:


  • Annual mileage: 400 miles × 12 months = 4,800 miles
  • Deduction: 4,800 × $0.67 = $3,216
  • Plus overnight lodging/meals if applicable

  • If you're in the 22% bracket, this saves you $707 in taxes annually.


    How to claim it


    Report this deduction directly on Form 1040, Schedule 1 — it reduces your adjusted gross income, making it more valuable than a regular itemized deduction.


    Key takeaway: Military reservists traveling 100+ miles for duty can deduct travel expenses, often saving $500-$1,000 annually.

    Key Takeaway: Military reservists retain valuable travel expense deductions that most employees lost in tax reform.

    RK

    Robert Kim, Tax Return Analyst

    Best for actors, musicians, and other performing artists meeting IRS criteria

    Qualified performing artists: Special rules apply


    If you're a performing artist, you may qualify for the unreimbursed employee expense deduction if you meet strict IRS criteria.


    Qualification requirements


    You must meet ALL of these:


    1. Services performed for at least 2 employers during the tax year

    2. At least $200 in expenses from each employer

    3. AGI of $16,000 or less before deducting these expenses

    4. Expenses exceed 10% of gross income from performing arts


    What you can deduct


  • Costumes and makeup not suitable for everyday wear
  • Sheet music and arrangements
  • Instrument maintenance and accessories
  • Photos, resumes, and promotional materials
  • Agent and manager fees
  • Union dues
  • Classes and coaching

  • Example scenario


    A musician earning $15,000 from two venues with $2,000 in qualifying expenses:

  • AGI: $15,000 (under $16,000 limit)
  • 10% threshold: $1,500
  • Deductible amount: $2,000 - $1,500 = $500
  • Tax savings: $500 × 12% = $60

  • Important limitation


    The $16,000 AGI limit makes this deduction rare — most performing artists earning enough to have significant expenses exceed this threshold.


    Key takeaway: Very few performing artists qualify due to the $16,000 income limit, but those who do can deduct expenses over 10% of performing arts income.

    Key Takeaway: The $16,000 income limit makes this deduction available to very few professional performing artists.

    Sources

    employee expensesunreimbursed expensestax deductionsitemized deductions

    Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.

    Can I Deduct Unreimbursed Employee Expenses? | MissedDeductions