Deducting Un-reimbursed Professional Expenses

According to the IRS, to be deductible, an expenditure must be both “ordinary” and “necessary” in connection with your profession.  The IRS defines “ordinary” as common and accepted in a particular profession and “necessary” as helpful and appropriate for a particular profession.

Here’s a list of 16 professional expenditures commonly incurred by young health care professionals:

• Automobile expenses
• Beepers and pagers
• Books/library
• Cellular telephones 
• Computer purchases
• Education, examinations & licenses
• Equipment & instruments
• Job search
• Malpractice insurance
• Meals & entertainment
• Parking & tolls
• Professional dues, journals & subscriptions
• Psychoanalysis as part of training
• Supplies
•  Travel & lodging
• Uniforms & cleaning

 Please note:  Employees may not deduct professional expenses that are eligible for reimbursement from their employer.