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I am employed by a company and they closed without reimbursing my expenses. How do I record that loss?

Forum|Forum|5 years ago
July 12, 2020
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I was employed by a company that closed and did not reimburse my expenses. How do I deduct that loss?

Best answer by GiseleD

Under the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, the unreimbursed employee expenses deduction has been suspended in tax years 2018 through 2025 for most taxpayers. On the federal return, only Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses can deduct employee business expenses this year. If you don't fall into that category, you will not be able to deduct those expenses on the federal return.

Some states still allow you to deduct these expenses, but I would need to know which state you are in so I can look this up for you.

At the end of the day, you might have to seek civil recourse to recoup these losses.

GiseleDAnswer

Under the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, the unreimbursed employee expenses deduction has been suspended in tax years 2018 through 2025 for most taxpayers. On the federal return, only Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses can deduct employee business expenses this year. If you don't fall into that category, you will not be able to deduct those expenses on the federal return.

Some states still allow you to deduct these expenses, but I would need to know which state you are in so I can look this up for you.

At the end of the day, you might have to seek civil recourse to recoup these losses.

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