Which Tax Deductions Can I Take As a W-2 Employee?

Most people assume there are many tax deductions for W-2 employees, but federal rules actually limit the types of work-related expenses you can claim.

As a W-2 employee, there is pretty much nothing deductible.

The laws changed in 2018, and there were things that you could deduct prior to that such as unreimbursed mileage and other unreimbursed employee expenses, and now you can’t. (To be fair, there could be certain situations where there are deductions and you should always check that with your CPA. I can’t say the answer is always nothing a 100% of the time.)

The good news is that there are things that you can deduct on your personal taxes, including donations and medical expenses, assuming you itemize and that the costs are greater than the standard deduction. These deductions will lower your tax liability.

Understanding tax deductions for W-2 employees can help you maximize eligible credits and avoid missing out on important adjustments like retirement and health savings contributions.

But unfortunately, as far as business expenses go, if you’re a W-2 employee, the answer is just about nothing.

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Sincerely,
Maya Weinreb | Founder & CEO
813-336-1574