---
title: Deducting Employee Business Expenses
description: Employee Business Expenses
image: https://info.ongandcompany.com/hubfs/Business-Expenses.jpeg
---

[![](https://info.ongandcompany.com/hubfs/Backgrounds/ong-final_sig.jpg)](http://www.ongandcompany.com/)

# Deducting Employee Business Expenses

[Richard Ong](https://info.ongandcompany.com/blog/author/richard-ong) / January 17, 2019 /

[Tax Planning](https://info.ongandcompany.com/blog/topic/tax-planning), [Tax Deductions](https://info.ongandcompany.com/blog/topic/tax-deductions)

![](https://app.hubspot.com/settings/avatar/89ca6f67445537c2c631f1fe9d43c977)

Under recent tax legislation, the deduction for miscellaneous expenses has been eliminated, effective for 2018 through 2025. This wipes out any write-off for employee business expenses you pay out of your own pocket.  
However, employers will often agree to authorize a plan that reimburses business expenses, like those involving travel. As a result, reimbursements you get from your employer may be tax-free to you, while the payments remain deductible by the company.  
**Your employer's accountable plan**  
Your employer may authorize a plan that reimburses travel expenses by using an accountable plan, which helps ensure that expenses qualify for favorable tax treatment. The plan complies with tough IRS rules requiring substantiation for the date, time, place, amount and business purpose of business travel. Similarly, an accountable plan may be used to reimburse employees for the cost of tools, uniforms or other expenses.  
In order for an accountable plan to qualify for tax breaks, it must meet the following requirements (and you can help):

- **The expenses must have a business connection.** The plan may reimburse your travel expenses to a distant location on behalf of the company, but not a disguised vacation. For instance, if you go on a business trip and spend most of the time lying on the beach drinking margaritas, your expenses likely won't be considered related to business. It may be a good idea to confirm with your employer what type of expenses qualify before you go on a business trip.
- **Employees must account for expenses to the employer within a reasonable time.** Usually, you'll file the paperwork with the accounting department once you return from the trip. But this process can't drag on for months. Ask your employer how much time you have to report your business expenses.
- **Employees must return excess reimbursements within a reasonable time.** For example, 90 days might be the max. You can avoid putting your tax breaks in jeopardy by asking your employer what the deadline is to return any excess when you first receive the reimbursements.

If the accountable plan doesn't comply with these rules, payments won't be deductible by your company. Even worse, you and other employees will be taxed on the reimbursements — even though you incurred the costs doing your job! Check with accounting to ensure the requirements are met.

[![Schedule Free Consultation](https://no-cache.hubspot.com/cta/default/2284926/3294d327-5b89-47f5-a693-919af26dcdf4.png)](https://cta-redirect.hubspot.com/cta/redirect/2284926/3294d327-5b89-47f5-a693-919af26dcdf4)

 

 

- [Tweet](https://twitter.com/share)

### Subscribe

### Recent Posts

### Topics

- [Business Taxes (2)](https://info.ongandcompany.com/blog/topic/business-taxes)
- [Client Spotlight (18)](https://info.ongandcompany.com/blog/topic/client-spotlight)
- [COVID-19 Relief (2)](https://info.ongandcompany.com/blog/topic/covid-19-relief)
- [Education Savings (5)](https://info.ongandcompany.com/blog/topic/education-savings)
- [Education Tax Benefits (10)](https://info.ongandcompany.com/blog/topic/education-tax-benefits)
- [Education Tax Credits (2)](https://info.ongandcompany.com/blog/topic/education-tax-credits)
- [Estate Planning (1)](https://info.ongandcompany.com/blog/topic/estate-planning)
- [Estate Tax (3)](https://info.ongandcompany.com/blog/topic/estate-tax)
- [Financial Statements (1)](https://info.ongandcompany.com/blog/topic/financial-statements)
- [Flexible Spending Accounts (2)](https://info.ongandcompany.com/blog/topic/flexible-spending-accounts)
- [Health Insurance (3)](https://info.ongandcompany.com/blog/topic/health-insurance)
- [Home Office Deductions (1)](https://info.ongandcompany.com/blog/topic/home-office-deductions)
- [Information Reports (3)](https://info.ongandcompany.com/blog/topic/information-reports)
- [Kansas Sales Tax (1)](https://info.ongandcompany.com/blog/topic/kansas-sales-tax)
- [Nonprofits (1)](https://info.ongandcompany.com/blog/topic/nonprofits)
- [One Big Beautiful Bill Act (1)](https://info.ongandcompany.com/blog/topic/one-big-beautiful-bill-act)
- [Partnership Rules (1)](https://info.ongandcompany.com/blog/topic/partnership-rules)
- [Payroll (6)](https://info.ongandcompany.com/blog/topic/payroll)
- [Real Estate (7)](https://info.ongandcompany.com/blog/topic/real-estate)
- [Retirement Savings (17)](https://info.ongandcompany.com/blog/topic/retirement-savings)
- [Self Employment (13)](https://info.ongandcompany.com/blog/topic/self-employment)
- [Starting a New Business (7)](https://info.ongandcompany.com/blog/topic/starting-a-new-business)
- [State PTET Updates (1)](https://info.ongandcompany.com/blog/topic/state-ptet-updates)
- [Tax Cuts and Jobs Act (1)](https://info.ongandcompany.com/blog/topic/tax-cuts-and-jobs-act)
- [Tax Debt (3)](https://info.ongandcompany.com/blog/topic/tax-debt)
- [Tax Deductions (82)](https://info.ongandcompany.com/blog/topic/tax-deductions)
- [Tax Fraud (5)](https://info.ongandcompany.com/blog/topic/tax-fraud)
- [Tax Planning (86)](https://info.ongandcompany.com/blog/topic/tax-planning)
- [Tax Representation (5)](https://info.ongandcompany.com/blog/topic/tax-representation)
- [The Corporate Transparency Act (1)](https://info.ongandcompany.com/blog/topic/the-corporate-transparency-act)
- [Unclaimed Property (1)](https://info.ongandcompany.com/blog/topic/unclaimed-property)

[See all](https://info.ongandcompany.com/blog/deducting-employee-business-expenses#)

### Archive

- [June 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/06)
- [May 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/05)
- [April 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/04)
- [March 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/03)
- [January 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/01)
- [November 2025 (1)](https://info.ongandcompany.com/blog/archive/2025/11)
- [September 2025 (2)](https://info.ongandcompany.com/blog/archive/2025/09)
- [August 2025 (3)](https://info.ongandcompany.com/blog/archive/2025/08)
- [July 2025 (4)](https://info.ongandcompany.com/blog/archive/2025/07)
- [December 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/12)
- [September 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/09)
- [February 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/02)
- [October 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/10)
- [September 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/09)
- [July 2023 (2)](https://info.ongandcompany.com/blog/archive/2023/07)
- [June 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/06)
- [November 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/11)
- [September 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/09)
- [July 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/07)
- [December 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/12)
- [November 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/11)
- [April 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/04)
- [January 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/01)
- [December 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/12)
- [October 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/10)
- [June 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/06)
- [April 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/04)
- [March 2020 (4)](https://info.ongandcompany.com/blog/archive/2020/03)
- [February 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/02)
- [January 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/01)
- [December 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/12)
- [November 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/11)
- [October 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/10)
- [September 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/09)
- [August 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/08)
- [July 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/07)
- [June 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/06)
- [May 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/05)
- [April 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/04)
- [March 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/03)
- [February 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/02)
- [January 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/01)
- [December 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/12)
- [November 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/11)
- [October 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/10)
- [September 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/09)
- [August 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/08)
- [July 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/07)
- [June 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/06)
- [May 2018 (5)](https://info.ongandcompany.com/blog/archive/2018/05)
- [April 2018 (1)](https://info.ongandcompany.com/blog/archive/2018/04)
- [March 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/03)
- [February 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/02)
- [January 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/01)
- [December 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/12)
- [November 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/11)
- [October 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/10)
- [September 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/09)
- [August 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/08)
- [July 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/07)
- [June 2017 (7)](https://info.ongandcompany.com/blog/archive/2017/06)
- [May 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/05)
- [April 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/04)
- [March 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/03)
- [February 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/02)
- [January 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/01)
- [December 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/12)
- [November 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/11)
- [October 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/10)
- [September 2016 (6)](https://info.ongandcompany.com/blog/archive/2016/09)
- [August 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/08)
- [July 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/07)
- [June 2016 (4)](https://info.ongandcompany.com/blog/archive/2016/06)

[See all](https://info.ongandcompany.com/blog/deducting-employee-business-expenses#)

 © Copyright 2016 | Ong & Company. All rights reserved.

**