Expenses for work are required—mileage for your commute, work clothes, educational expenses, and even clothes to wear. Here’s what you can and can’t write off for your 2007 taxes.
Mileage: The standard mileage rate for business use is 48.5 cents/mile (for 2007). Mileage to and from work is not eligible for deduction. However, if your job tasks require you to run errands, attend meetings, or otherwise use your personal vehicle, those miles can be deducted. Keep a written tally of your work miles, in lieu of receipts.
Rent/Mortgage: If you work from home you can write off a portion of your rent or mortgage. Your work space must be used only for work. (As in, if you use the same computer to play The Sims in the evenings, you don’t qualify.) You do not need a separate room for the office, as long as a specific space is set aside (such as in the dining room, or portion of the bedroom, etc.) If you bring your work home for convenience, you do not qualify—only if your employer does not provide a workspace for you can you use this deduction. Click here for more information.
Cell phone: If you are required to use your cell phone for work, and your employer does not reimburse you for the expense, you may write it off. However, you must maintain a separate phone for business. You can not write off a personal phone, even if you happen to use it for work.
Clothing: Yes, I know, work-appropriate clothing is required for work. However, that does not make your wardrobe eligible for a tax write-off. Exception: if you are required to purchase a specific uniform used only for work, or are asked to buy something specific, such as black pants.
Union and Professional Dues: These are eligible for a write-off.
Education: If your educational expenses are acquired in order to further your knowledge in your current profession, and your company does not reimburse the expense, you can take a deduction. Click here for more info.
Job Search: These expenses are eligible if you are seeking a job in your current profession. Included: Employment agency fees, resume preparation and printing, phone calls, driving miles, mailing expenses, and travel for out-of-town interviews.
Entertainment: If your company does not reimburse for client-related entertainment expenses (such as golf), you are eligible for a write-off for up to 50% of the entertainment cost. It must be considered “ordinary or necessary for your profession.”
Travel: Business trips that are not reimbursed by your employer are eligible for deduction. Included: airfare, hotel, taxi, dry-cleaning, etc. Generally meals are only eligible for a 50% discount. Conference or course fees fall under “education” (see above) and cost of entertaining clients falls under “entertainment” (see above).
