W-2 AND EMPLOYEE EXPENSES

[Dan]

QUESTION:  The client is a golf professional-an employee.  All income is reported on a W-2.  The golf professional has expenses of teaching others how to golf that he is not reimbursed for.  His un-reimbursed expenses are around $11,000.  Where can I deduct those un-reimbursed expenses on the tax return?  

QUESTION:  Can I use form 2106 (Employee Business Expenses) in this circumstance?

QUESTION:  Would the golf professional be the same thing as a qualified performing artist?

[Lion EA]

No and No. There are no deductions for unreimbursed employee expenses under TCJA, until it sunsets or Congress votes it down. A qualified performing artist is an entertainer/performer, such as a singer, actor, musician, or artist.

See the flow chart and Line 10 instructions: https://www.irs.gov/instructions/i2106#f64188v01

Your client can work with his employer to establish an accountable plan for expense reimbursements to receive nontaxable reimbursements that will be deductible by his employer. Win-Win. Help them out by providing information. Here's one source: https://www.journalofaccountancy.com/issues/2020/feb/employee-expenses-accountable-plan.html

[Dan]

Lion EA, thanks for your help.

[Patrick Michael]

Make sure to see if your state still allows employee expenses as an itemized deduction. NY decoupled from the TCJA rules and does allow the deduction.

[Max W]

10 hours ago, Patrick Michael said:

Make sure to see if your state still allows employee expenses as an itemized deduction. NY decoupled from the TCJA rules and does allow the deduction.

The same goes for California.