Unreimbursed Employee Expenses: Can You Deduct Them in 2025?

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H1

Unreimbursed Employee Expenses: Can You Deduct Them in 2025?

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ANSWER SECTION

Unreimbursed employee expenses are NOT deductible on your federal tax return for tax years 2018 through 2025. The Tax Cuts and Jobs Act of 2017 (TCJA) suspended the miscellaneous itemized deduction for unreimbursed employee expenses during this period. This means W-2 employees cannot deduct expenses such as uniforms, tools, professional subscriptions, job search costs, or home office expenses. However, some states including California and New York still allow the deduction on state income tax returns.

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H2: What Expenses Are No Longer Deductible?

The TCJA suspension includes these previously deductible expenses:

Work-Related Expenses:

• Uniforms and work clothes (unless required and not suitable for street wear)
• Tools and equipment
• Professional licenses and subscriptions
• Work-related education and training
• Home office expenses (for employees)
• Job search expenses
• Union dues and fees
• Professional association dues

Travel and Meals:

• Unreimbursed business travel
• 50% of unreimbursed business meals
• Mileage for work (not commuting)

Other:

• Business use of personal phone
• Legal fees related to employment
• Tax preparation fees (for employees)

Note: Self-employed individuals can still deduct business expenses on Schedule C. These rules only apply to W-2 employees.

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H2: TCJA Timeline

Period	Deductible?	Rules
Before 2018	Yes	Subject to 2% AGI floor
2018-2025	No	Suspended by TCJA
2026+	Unknown	Depends on Congressional action

Before 2018 (Historical):

• Deductible as miscellaneous itemized deduction
• Subject to 2% of AGI floor
• Must itemize to claim

2018-2025:

• NOT deductible on federal return
• Suspended regardless of amount
• No way to claim these expenses

After 2025:

• Suspension expires December 31, 2025
• Unless extended, deduction returns in 2026
• Would again be subject to 2% AGI floor

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H2: States That Still Allow the Deduction

While federal deduction is suspended, some states have their own rules:

State	Deductible?	Notes
California	Yes	Schedule CA, subject to 2% floor
New York	Yes	Subject to 2% of NY AGI
Alabama	Yes	Subject to limitations
Arkansas	Yes	Subject to limitations
Iowa	Yes	Subject to 2% floor
Minnesota	Yes	Subject to limitations
Mississippi	Yes	Subject to limitations
Pennsylvania	Partial	Limited categories only

California Specifics:

• Form 540 Schedule CA
• California did not conform to TCJA suspension
• Subject to 2% of California AGI floor
• Must itemize deductions

Most Other States:

• Follow federal treatment (no deduction 2018-2025)

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H2: What Employees Can Do Instead

Since you can't deduct these expenses, consider:

1. Employer Reimbursement:

• Ask employer to adopt accountable plan
• Reimbursements under accountable plan are tax-free
• Better than old deduction system

2. Request Employer to Pay:

• Negotiate for employer to cover expenses
• Business deduction for them, no tax to you

3. Change Employment Classification:

• Some workers may qualify as independent contractors
• Self-employed can deduct business expenses on Schedule C
• Consult tax professional before changing status

4. Track Expenses for Future:

• If deduction returns in 2026, you'll have records
• Keep receipts and documentation

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H2: Related Tax Questions

For information on union dues specifically, see our guide on are union dues tax deductible with state-by-state rules.

Learn about job expenses for W-2 workers in our guide on job expenses for W-2 income with complete deduction rules.

For car insurance and vehicle expenses, see is car insurance tax deductible with business use rules.

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