question.jpgIn Federal Income Tax

What are the limits to the job related expenses I can deduct?

Most job related expenses are subject to the 2% floor that applies to all miscellaneous deductions. Collectively, you can only deduct miscellaneous expenses in excess of 2% of your adjusted gross income. However, there are certain job expenses for which the 2% floor does not apply - these include: (i) job related moving expenses; (ii) a performing artist’s expenses; (iii) expenses related to a physically or mentally disabled employee’s ability to perform his or her job; and (iv) expenses for teachers, counselors, instructors, etc.

Home office expenses are further limited by the fact that the deduction cannot be greater than the business income from the business the home office is used for.

Finally, if it applies to your particular situation, the 2% reduction will generally further limit your total deduction.