Temporary Workplace Tax Overview
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Business expenses for most employees are not deductible for years 2018 through 2025. Thus, the provisions of this chapter will not apply for federal purposes for most employees in those years. However, some states, like California, have not conformed to this provision of TCJA and continue to allow unreimbursed employee business expenses as part of miscellaneous itemized deductions. These rules still apply for federal purposes for Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials, who are allowed above-the-line deductions, as well as self-employed individuals.
This section includes details about how the IRS treats business expenses for workers who have a temporary workplace, including information about current rules for itemized deductions, which are outlined below.
Employee business expenses, including local business transportation and away-from-home travel expenses, are not federally deductible as an itemized deduction in years 2018-2025 because the TCJA suspended miscellaneous itemized deductions subject to the 2% of AGI reduction. The rules explained in this chapter continue to apply to self-employed individuals and for some states that follow the pre-TCJA rules.