This document enables individuals to deduct ordinary and necessary expenses incurred for their job. These costs must be directly related to the work performed and are often unreimbursed by the employer. A common example includes travel expenses for attending a conference directly relevant to one’s profession.
Its significance lies in providing potential tax relief, effectively lowering the taxable income of eligible employees. Historically, it served as a more widely applicable tool, but changes in tax law have narrowed its applicability. Understanding its nuances is crucial for maximizing potential deductions and ensuring compliance with current regulations.
