You can deduct impairment-related work expenses of persons with disabilities as miscellaneous itemized deductions. They are not subject to the 2% limit.
Per IRS Publication 529 Miscellaneous Deductions
: Page 3: Employee with impairment-related work expenses
Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. They also include other expenses in connection with the place of employment that enable the employee to work. See Pub. 463 for more details. Page 11: How To Report
Employees with impairment-related work expenses.
Most of the categories of employees who are able to claim deductions for unreimbursed employees report these deductions as an adjustment to income on Schedule 1 (Form 1040 or 1040-SR), discussed next. However, employees with impairment-related work expenses on Form 2106 report these expenses on Schedule A (Form 1040 or 1040-SR).
Enter impairment-related work expenses on Form 2106. Enter on your Schedule A (Form 1040 or 1040-SR); or your Schedule A (Form 1040-NR), that part of the amount on Form 2106, that is related to your impairment. Those employment-related expenses not related to your impairment are a miscellaneous itemized deduction and are no longer deductible.
If you are self-employed, enter your impairment-related work expenses on the appropriate Form (Schedule C, E, or F) used to report your business income and expenses. Per IRS Publication 463 Travel, Entertainment, Gift and Car Expenses, page 34:
You can deduct impairment-related expenses as business expenses if they are:
- Necessary for you to do your work satisfactorily;
- For goods and services not required or used, other than incidentally, in your personal activities; and
- Not specifically covered under other income tax laws.
To enter the impairment-related work expenses on Form 2106
, which will transfer to Schedule A, Line 16:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Itemized or Standard Deductions to expand the category and then click Impairment-related work expenses of persons with disabilities
- Click Add to create a new copy of the form or Review to review a form already created and if those options are not available the program will proceed with the interview questions for you to enter or review the appropriate information
- On the screen titled Employee Expenses - Occupation Related, select Impaired-related work expenses as an employee with a disability, then click Continue
- The program will proceed with the interview questions for you to enter or review the appropriate information
- On the screen titled Employee Expenses - Other Expenses, enter the impaired-related work expenses in the Other Business Expenses entry field