The Tax Cut and Jobs Act, which went into effect on January 1, 2018, made numerous changes to the U.S. tax system. Among those changes was the elimination of most miscellaneous itemized deductions. Before the new law was enacted, you could deduct the amount that exceeded 2% of your adjusted gross income (AGI) for unreimbursed employee expenses. Effective with the 2018 tax year, most miscellaneous itemized deductions, including unreimbursed employee expenses that were subject to the 2% of AGI, have been eliminated. Eliminated deductions that may affect Signalmen include:
- Tools and supplies used in your work;
- Moving expenses due to relocating for your job;
- Unreimbursed miles driven for work;
- Unreimbursed work-related travel, transportation, and meal expenses;
- Union dues;
- Work-related education;
- Work clothes and uniforms.
Please consult your local tax professional if you have any questions as to how the new law specifically affects your situation, and what items you can and cannot deduct going forward.