Here Are the Work Expenses You Can Deduct on Your Tax Return This Year

Navigating tax season can be a rollercoaster, especially if you're self-employed or have a side gig. Determining what work expenses count as tax deductions can help you get a refund or lower your tax bill. But knowing which tax breaks you actually qualify for can help ensure you're claiming all the right tax breaks and not leaving money on the table. 

Your laptop, home office furniture and even subscriptions may qualify for a write-off, but there are some restrictions you need to know before you file. Here's a rundown of work expenses that may qualify for tax breaks. 

Work expenses W-2 employees can claim 

The work-related expenses that W-2 employees can claim have changed since the Tax Cuts and Jobs Act of 2017 halted some itemized deductions -- including the deduction of business expenses that weren't reimbursed. 

The suspension is expected to remain in place through the end of the year. However, there are a few exceptions for W-2 employees to be able to deduct some work expenses. Here are five.  

Expenses for educators

It is very common for teachers to pay out of pocket for things they use in their classrooms. K-12 teachers, teacher assistants, and school administrators are allowed to deduct up to $300 per year for classroom supplies, even without itemizing.

Armed Forces reservist travel 

Reservists in the US military may be able to deduct travel expenses. That includes serving in the Army or Air National Guard for your state. These expenses are deductible whether you choose to file standard or itemized deductions. 

Unreimbursed costs for performing artists

If you're a performing artist who worked for at least two different employers last year, you may be able to deduct unreimbursed expenses -- even if you received wages as a W-2 employee. 

There are a few caveats: 

• You had to receive at least $200 from each employer
• Your adjusted gross income as a performing artist must be less than $16,000 for the tax year. 

Your expenses, which can include stage makeup, travel and more, must exceed 10% of your gross income for the year as a performing artist. 

Fee-basis government officials

It's rare but some state, county, and municipal government officials aren't paid a salary directly by their respective government agency. Instead, they get paid a portion of the fees paid by the public for the services rendered by that agency. 

For example, a county clerk may be compensated entirely via the recording fees paid to file documents with the county. The clerk may receive a paycheck from the local government and be issued a W-2, but the IRS technically considers them self-employed. In these cases, these government officials can claim an above-the-line deduction -- meaning expenses are subtracted from income before calculating the adjusted gross income -- against their income for all unreimbursed work expenses.

Employees with impairment-related expenses

Individuals with mental and physical disabilities may require accommodations to do their work, such as a sign language interpreter or screen reader technology tools.

Any reasonable expense that allows you to work, but that is not reimbursed by your employer, is deductible. To claim these deductions, however, you must itemize your deductions. And these expenses must be specifically related to allowing you to adequately perform your job -- not just for your personal life.

Read more: Tax Refund? I Can Afford a Carton of Eggs With Mine

Common deductions for freelancers and gig workers 

If you're a freelancer, independent contractor, or do gig work, you're considered a self-employed small business owner when filing your taxes. That means you can deduct all of the expenses that any other small business owner is allowed to. 
Unlike deductions mentioned above for W-2 employees, these deductions are claimed on your business tax return. For most freelancers and gig workers, this will be the Schedule C form attached to your 1040 tax return. Schedule C includes a variety of line items to deduct expenses. The best tax software lets you create categories for deductions. 
Here are some deductions for self-employed individuals:

Business use of a vehicle

When using your car for business purposes, you may deduct actual expenses or use the standard mileage rate of 67 cents per mile for 2024. The IRS requires that you keep a written mileage log that includes the number of miles and the purpose of each trip, but some apps can make tracking easy. MileIQ and Everlance are two popular options. 

Travel-related expenses such as flights, lodging and taxis are also tax deductible. Most business meals are limited to a 50% deduction in 2024.

Equipment and supplies

The IRS allows you to deduct up to $1.22 million in deductions for qualifying equipment and supplies. There's an extensive list of items that qualify, but a few include: 

• Business cards
• Computers 
• Social media ads
• Software 
• Website hosting

You can also deduct up to $5,000 in startup expenses in the first year. 

If you manufacture tangible goods, such as crafts on an Etsy store, the costs you pay for raw materials, parts and labor that go into manufacturing your products are deductible, too.

Home office deduction

If you use part of your home exclusively for business, you can deduct a portion of rent, utilities, repairs and insurance for the home office tax deduction. To claim this deduction, the simplified method allows a standardized $5 per square foot deduction on up to 300 square feet of space in your home where you work. 

Qualified business income deduction

You can deduct up to 20% of your business profits under this new section of the tax code. There are strict limitations on qualifying for this deduction, and it's one of the more complicated sections of the tax code. It is highly recommended that you use tax software that can handle business tax returns to claim this deduction or consult with a tax professional to make sure you qualify.

Retirement contributions

Simplified employee pension individual retirement accounts (SEP-IRA) and individual 401(k) accounts are two popular retirement plans that self-employed individuals can deduct as business expenses, contributing up to $69,000 in 2024 for individuals under 50. Keep in mind that these accounts must be tied to a legally operating business, but you may still qualify as the business owner or employee. The limit increases to $76,500 if you are 50 or older.

Self-employment tax deduction

Self-employed individuals pay 15.3% in Social Security and Medicare taxes. You can deduct half of this tax since W-2 employees only have to pay half at their jobs. Keep in mind that this only applies to your income tax. Self-employed individuals can also deduct 100% of health insurance premiums if they are not eligible to participate in a health plan from another employer. 

Hold onto receipts to make it easy to claim these deductions

Good recordkeeping is the key to claiming all the deductions you may qualify for. Keep receipts for everything business-related, and update your mileage log daily to stay on track. I also recommend keeping your business and personal finances separate by using separate bank accounts and credit cards. 

One way to keep all of your expenses and is with accounting software that you trust. Aim to update your income and expenses weekly to make it easier to track your taxable income and make the mandatory estimated tax payments.