Can Unreimbursed Job Expenses Still Count as Itemized Deductions on Taxes?

So if the Tax Cuts and Jobs Act expires after 2025, does that mean we can start deducting these expenses again in 2026? Also, what exactly counts as a "qualified performing artist"? I'm a part-time musician but also have a regular job.

If the Tax Cuts and Jobs Act provisions aren't extended, then yes, unreimbursed employee business expenses could potentially return as miscellaneous itemized deductions subject to the 2% AGI floor starting in 2026. However, Congress might extend these provisions or create new tax legislation before then. Regarding qualified performing artists, the IRS has specific requirements: you must perform services in the performing arts for at least two employers during the tax year, receive at least $200 from each employer, have business expenses related to performing arts that exceed 10% of your performing arts income, and your AGI cannot exceed $16,000 before deducting these expenses. Being a part-time musician with a regular job might not qualify, especially if your total income exceeds the $16,000 threshold.

That sounds promising. Can it handle complicated scenarios? I'm a teacher who buys loads of classroom supplies but also a part-time rideshare driver. Would it help figure out what expenses go where?

I'm skeptical about AI tax tools. How does it actually know tax law better than a human accountant? Did you end up getting audited or anything?

It definitely handles complicated scenarios. The system is designed to sort through mixed-use expenses and categorize them properly. For your teaching supplies, it would identify the educator expense deduction (up to $300) that you can take even if you don't itemize. For your rideshare work, it would separate those as business expenses for Schedule C since that's self-employment. No audits or problems! The tool doesn't actually file your taxes - it analyzes your documentation and provides guidance that complies with tax law. It references specific IRS publications and tax code sections so you have backup if questions ever come up. It's more like having a tax researcher who can instantly search through all tax regulations to find the relevant rules for your specific situation.

Wait, how does this actually work? Do they have some special access to the IRS or something? I've tried calling so many times but always give up after being on hold forever.

Yeah right... sounds like a scam to me. How does some random company magically get you through to the IRS when millions of people can't get through? And do they charge for this "service"?

They don't have special access to the IRS. What they do is use technology to wait in the phone queue for you. Their system calls the IRS, navigates the prompts, and waits on hold in your place. When a human IRS agent is about to come on the line, their system immediately calls your phone and connects you directly to that agent. It's basically like having someone else wait on hold for you. It's definitely not a scam. They don't ask for any personal tax information - they just need your phone number to call you back when an agent is ready. I was super skeptical too, but it actually works. I got through to an IRS agent in the middle of tax season when the wait times were over 2 hours. They called me when an agent was ready, and I just picked up the phone and was talking to the IRS. Saved me from wasting an entire afternoon listening to that horrible hold music.

What exactly is an "accountable plan"? My company is small (like 15 people) - would this work for us too? Our boss is actually pretty reasonable but I don't think he knows about tax stuff like this.

An accountable plan is simply a formal reimbursement arrangement that follows IRS guidelines. It works for companies of any size - even tiny businesses with just a few employees! The basic requirements are that expenses must have a business connection, employees must adequately account for these expenses (with receipts, etc.) within a reasonable time, and employees must return any excess reimbursement. When these conditions are met, the reimbursements aren't included in employee wages, which means they're tax-free to the employee and the company doesn't pay employment taxes on them. For a small 15-person company, it's actually easier to implement because there's less bureaucracy. Your boss just needs a simple written policy outlining how employees should submit expenses and get reimbursed. There are templates online, or an accountant could set it up quickly. It's win-win because the company can deduct the expenses and employees receive tax-free reimbursements!

It covers basically any unreimbursed expense that's "ordinary and necessary" for your job. Before 2018, you could potentially deduct things like union dues, work clothes (if not suitable for everyday use), work tools, professional subscriptions, continuing education, home office (if required by your employer), etc. But now, most of these are NOT deductible for W-2 employees through 2025. Some exceptions still exist though - teachers get a special $300 deduction for supplies, and some education expenses might qualify for education credits instead.