DEDUCTIONS   Itemized Deduction     Who is a qualified performing artist? (QPA) A qualified performing artist is an individual who: Performed services in the performing arts as an employee for at least two employers during the tax year. Received from at least two of those employers’ wages of $200 or more per employer. Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts. Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist. If you do not meet all of the above requirements, you must deduct your expenses as a miscellaneous itemized deduction subject to the 2% limit.   Who is a fee-basis state or local government official (FBO)? A fee basis state or local government official is an official who is an employee of a state or political subdivision of a state and is compensated, in whole or in part, on a fee basis.   If I have impairment related work expenses, what should I do? If you have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (form 1040), line 27 without regard to the usual 2 % AGI limit. To deduct these expenses, you must complete Form 2106 or 2106 –EZ, even if you meet the requirements.   What do I have to do if I am a QPA? If you are a qualified performing artist, you can get benefit of your employees expenses as business expenses. You can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. If you do not meet the QPA requirements, you must deduct your expenses as a miscellaneous itemized deduction subject to the 2% limit.   How will these expenses be reflected in my tax return? If you have expenses that are not reimbursed by your employer, or if your employer does not use an accountable plan, you'll generally have to claim the un-reimbursed expenses on Form 2106, Employee Business Expenses. In some cases you may be able to use Form 2106-EZ, Un-reimbursed Employee Business Expenses. Then the total amount of your expenses from either of these forms is transferred to Line 20 of Form 1040 Schedule A, Itemized Deductions.   Which business expenses I can claim on my return?  The employees are given the opportunity to claim some tax deductions if you spend money on your job; e.g., on business meals and entertainment, local transportation, gifts, travel, education, supplies, tools, uniforms and other customary business expenses, so long as the expenses are considered reasonable and meet certain requirements.   Will I get full deduction of my employee business expenses? Your employee business expenses are classified as miscellaneous deductions in Schedule A-Itemized Deductions that must be reduced by 2 percent of your adjusted gross income (AGI) before they can be deducted. You will lose the benefit of some of your expenses, up to the amount of 2 percent of AGI. Or if you opt standard deduction since your itemized deduction is less than standard deduction, then you may loose deduction of entire expenses.   Which Employee Business Expenses are deductible? Employees can deduct all ordinary and necessary business expenses, using the same definition that is used by a business owner. An ordinary expense is one that is common and accepted in your line of work. A necessary expense is one that is appropriate or helpful for the work you do, even if it's not absolutely indispensable to your business. Amounts that you spend for personal or family reasons are not deductible. Also illegal payments and payments of fines or penalties are not deductible.