A reminder to employees about taking business expenses on Schedule A: Any expenses that an employer would have reimbursed are not deductible according to the Tax Court (Stidham, TC Summ. Op. 2012-61).
In that case, a taxpayer listed business expenses such as overnight travel, meals and parking fees that would have been reimbursable under his employer’s policy. He failed to complete his expense report on time so he didn’t receive reimbursement. The tax court ruled that since he could have been reimbursed for them he cannot claim a deduction.
The IRS auditors have requested a copy of the employer expense reimbursement policy in every recent audit that I have had where the IRS questioned Schedule A employee expenses. So be sure to keep a copy of this as backup to your tax return.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written. And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client: Before relying on any information given on this site, contact a tax professional to discuss your particular situation.