Unreimbured Business Expenses

[jipster]

What is the name of your state? Conneciticut

I worked for an employer from May 1, 2004 till July 31, 2004. During that time, I incurred several thousand dollars of expense due to my job. The agreement with the company, was that they would pay the expenses. But the contract fell through and never recieved a dime, including my paychecks. I have an attorney working on this problem.

My question is, am I allowed to deduct the unreimbured business expenses that I occured with this company. If so, and how much can I deduct.

 

[abezon]

Based just on what you posted, you can deduct the expenses. However, there may be other facts that change that answer. The expenses are reported on Schedule C if you were a self employed contractor; form 2106/schedule A if you were an employee. If you use form 2106, the deductible amount is your total miscellaneous expenses - 2% of your AGI. Then you decide whether to itemize or claim the standard deduction.

I suggest you see a tax pro. H&R Block had a guarantee that covers up to $5,000 of taxes if they deduct expenses you weren't allowed to claim. Ask for their best 2106 preparer, not a first year person.