1999 Tax Help Archives  

Pub. 17, Chapter 28 - Car Expenses & Other Employee Business Expenses

Introduction

This is archived information that pertains only to the 1999 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Download: Form 1040 • 1040 Instructions PDF or HTML
Schedule A & BForm 1040AForm 1040EZTax Tables

This chapter discusses rules for deducting the ordinary and necessary business-related expenses connected with:

  • Travel away from home,
  • Entertainment,
  • Gifts, and
  • Local transportation.

An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

This chapter also discusses:

  • What records you need to prove your expenses,
  • How to handle reimbursements of your employee business expenses, and
  • How to report your expenses on Forms 2106 and 2106-EZ.

Expenses fully reimbursed.
You will not need to read this chapter if all of the following are true.

  1. You fully accounted to your employer for your work-related expenses.
  2. You received full reimbursement for your expenses.
  3. Your employer required you to return any excess reimbursement and you did so.
  4. Box 13 of your Form W-2 shows no amount with a code L.

If you meet these four conditions, there is no need to show the expenses or the reimbursements on your return. See Reimbursements, later, if you would like more information on reimbursements and accounting to your employer.

If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2.

If you do not meet all of these conditions, you generally must complete Form 2106 or 2106-EZ and itemize your deductions to claim your expenses. See Completing Forms 2106 and 2106-EZ, later.

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