A deduction is available for money an employee spends to perform their duties in the course of their employment if they are unreimbursed by their employer. This includes mileage, licenses, union dues, education and out of pocket expenses. The expenses must be incurred as a condition of employment or utilized in the performance of the employee’s duties at the employer’s request. Real Estate Licenses and Continuing Education are examples of often unreimbursed expenses. Mileage driving from a main job to a second job is also deductible.
There is a requirement to maintain and keep records of all deductions claimed. Good auto mileage records are especially important. In the past few years line item audits of auto deductions have increased dramatically. Other expenses are usually supported by printed receipts. These expenses should be reported on a form 2106.