Job related income tax deductions

Key Takeaways

• Unreimbursed employee expenses were once broadly deductible for W-2 employees, but the Tax Cuts and Jobs Act of 2017 suspended the deductions for most workers from 2018 to 2025.
• A select group of workers, including armed forces reservists, performing artists, fee-basis government officials, disabled employees with impairment-related work expenses, and educators, can still deduct certain unreimbursed employee expenses.
• Certain workers must use Form 2106 to calculate deductible unreimbursed employee expenses and report them either as an "above-the-line" deduction on Schedule 1 or as an itemized deduction on Schedule A, depending on their situation.
• The deduction for unreimbursed employee expenses is currently set to be reinstated for all W-2 employees in 2026, but this could change with future congressional action.