Learn what unreimbursed employee expenses are still off-limits in 2025 for individual taxpayers in the USA—including home office, job tools, and travel costs.
Introduction
Since the Tax Cuts and Jobs Act (TCJA) of 2017, most employees have been unable to deduct their unreimbursed job expenses as miscellaneous itemized deductions. This suspension remains in effect for tax years through 2025. Many taxpayers still ask: Can I deduct home office costs, work supplies, or travel expenses? Unfortunately, the answer is generally no, unless you are self-employed or qualify for very narrow exceptions.
The Rule: No Miscellaneous Employee Deductions
Before 2018, employees could deduct certain unreimbursed business expenses that exceeded 2% of adjusted gross income (AGI). Under current law:
- Suspension Continues: The deduction for unreimbursed employee expenses remains suspended until at least tax year 2025.
- Only Self-Employed Qualify: Independent contractors and freelancers can still deduct eligible expenses on Schedule C.
- Reimbursements Are Key: Employees should seek employer reimbursement under an accountable plan instead.
What’s Still NOT Deductible in 2025?
❌ Home Office Expenses
Employees working remotely cannot deduct home office costs, utilities, or rent—even if the space is used exclusively for work. Only self-employed individuals or partners in a business may claim the home office deduction.
❌ Tools & Job Supplies
Costs for uniforms, equipment, or job-related tools are not deductible if you are an employee. Unless your employer reimburses you, these out-of-pocket expenses remain non-deductible.
❌ Unreimbursed Travel Expenses
Employee travel for business (e.g., airfare, lodging, meals, mileage) is no longer deductible unless reimbursed. Only self-employed taxpayers may still claim business-related travel deductions.
Who Can Still Deduct Work Expenses?
While most employees cannot deduct, there are limited exceptions:
- Armed Forces reservists traveling more than 100 miles from home
- Qualified performing artists with certain income levels
- Fee-basis state or local government officials
- Impairment-related work expenses for disabled employees
These special categories may still deduct on Schedule A, even in 2025.
Practical Tips for Employees
- Negotiate employer reimbursements under an accountable plan
- Keep records of all work-related costs in case tax laws change in 2026
- If eligible, consider switching to contractor status for greater deduction flexibility
Until tax reform sunsets after 2025, employee deductions for home office, tools, and travel remain suspended.
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