Prior to the 2018 tax year, taxpayers were able to deduct their out-of-pocket job expenses without limitations. However, the Tax Cuts and Jobs Act (TCJA) eliminated miscellaneous itemized deductions for certain individuals.
The following taxpayers can claim out-of-pocket job expenses from tax year 2018 and onward:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
- Qualified educators for teaching expenses (see Teaching Expenses for more recent tax years)
This excludes business owners who file a Schedule C. If you do not meet the categories above, you cannot claim out-of-pocket job expenses.
