List of five most frequent deductions for which the IRS will probe you.
1. Commuter Miles
Employees most usually eye for commuter miles tax-deductions, but driving to work-place is an ordinary cost incurred by an employee. However, your company might compensate you for miles travelled on the job, but you can't subtract miles to and from work. The employer may refund you for availing public transportation to work, but don’t expect that from the IRS.
Still, one exception exists, where if you are involved in two jobs and travel directly from one to the other; maintaining exact records and deducting them is fine.
2. Clothing
While fresh executives might expect their new suits to be tax-deductible, the IRS is not. But a uniform having the company's logo on it is tax-deductible, unlike regular office wear which is not. Still deducting the dry cleaning costs during a business trip referred to as a travel expense is permitted.
3. Home Office and Home Computer
Deducting a piece of your rent or mortgage or the cost of your computer is not permitted. But there are exceptions, if your company plainly entails you to telecommute and shall not reimburse you for the computer, then its deductible. For example, if your unit comprises 20 employees with just 10 desks, and you are left with nothing by working from home, you can avail that deduction.
Still, to qualify for such a deduction, your employer needs to provide you with a letter specifying the office rules for telecommuting and their applicability to everybody in a related position in the company.
4. Car Interest
Deducting the interest on your car loan exclusively is not possible regardless of the frequency of car driving during the job. So you are left just with availing the IRS's grant for mileage or actual expenses that also includes your car depreciation. The choice between two options shall depend on your real cost to manage the vehicle.
5. Missed Reimbursements
Remember not to miss the office reimbursement deadlines, as you can't cope up with a deduction. So submitting the paperwork for scheduled reimbursement process is important.
