Yes to all of the above (except the mileage rate is to pay for the gas and insurance so he can't take both). An employee can take expenses he incurs as. show more Yes to all of the above (except the mileage rate is to pay for the gas and insurance so he can't take both).
An employee can take expenses he incurs as part of his job as long as he is not being reimbursed for them. For his driving, he can take either the business percentage of all the expenses of having his car (gas + oil + insurance + tires + repairs + depreciation + etc times the percent of his miles that are business) or he can take the standard per mile -- but not both. Then he can add the other expenses of having his job - tools, uniforms, safety equipment and shoes, union dues, etc.
But then the bad news. As an employee, he has to subtract from that 2% of his gross income. For most people, you are now down to zero unless you have a LOT of employee expenses. Then more bad news. If you still have more than zero, you add that remainder to your other itemized deductions. So if you don't have enough other itemized deductions, you still don't benefit from claiming those expenses.
All this assumes that he is an employee (taxes withheld and pay reported on a W-2) and not an independent contractor (no tax withhld and pay reported on a 1099-MISC). If he IS a contractor, he can take all those expenses with subtracting the 2% and without losing them in the itemized deductions. In other words, he would get to benefit from every penny of expenses if he is a contractor.
Bob F · 7 years ago