Is having to Pay to park your company truck during your hometime Tax Deductible?

Because employees can no longer deduct business expenses. That’s the simple answer and there’s no gray area.

 

Yes...but the standard deduction DOUBLED. For most people, that more than made up for the loss of itemized employee expenses. I am willing to bet that you pay less in taxes after the tax law changes than before... here's a hint... a lower tax refund is for most part irrelevant. I used to get back around 4k or so.... now, I am close to even at tax time. Fine by me, since my total tax liability has decreased by around 8-10k, while grossing about 5k more than under the old rules. Not to mention, the fact that I can knock out my federal return in about 30 minutes.

 

I pay $100 a month to park my truck.

Yes, it IS deductible.... Its like any other truck expense, oil changes, truck wash, ect. Doesnt matter if you are a company driver or not. Just make sure you have receipts.

 

This info isn’t correct. Employees paid legally on a W2 can no longer deduct non-reimbursed business expenses. They haven’t been able to for a few years now. “Employees” misclassified as 1099 still can if that’s the type of company they work for.

 

In some states, you can still claim the unreimbursed employee business expenses

 

Not ENTIRELY true... many on this site may very well qualify. Direct from the IRS website:

IRS Tax Tip 2020-155, November 16, 2020

Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.

Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses, to take the deduction.

If someone falls into one of these employment categories, they are considered a qualified employee:

• Armed Forces reservists
• Qualified performing artists
• Fee-basis state or local government officials
• Employees with impairment-related work expenses

No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.

Here's what makes something a qualified expense:

• Paid or billed during the tax year
• For carrying on a trade or business of being an employee, and
• Ordinary and necessary

So by the above, any military reservist qualifies (which I was for several years when I started driving). A handicapped driver that has to pay to park in a specific spot would be another example... Im sure there are many more situations that may crop up that would make someone "qualified". I was also a CDL instructor for a few years, which would qualify me as an "educator" as another example...

 

If you read the instructions for that form, you'll see that military reservists are only able to deduct expenses related to travel for their military service. It's not a pass to deduct just any business related expense, especially one that doesn't relate to their military service. Similar issue for educators. For educators, you are only allowed to deduct up to $300 in books and classroom supplies.