On a W-2 far from home? You can no longer deduct your own expenses

A conversation that repeats on every job site.

What changed

Before 2018, an employee could deduct unreimbursed work expenses such as lodging, travel and tools as an itemized deduction. Since 2018 that deduction has been suspended, and the 2025 tax law made the change permanent.

What it means in practice

Bought tools with your own money? Not deductible. Rented a place near the site? Not deductible. Drove your own car for work errands? Not deductible.

The only route that works

Reimbursement from your employer under an accountable plan. The money comes to you tax-free and the company takes the expense. The difference in your take-home pay is noticeable.

What to ask HR

• is there an accountable plan
• are lodging and travel reimbursed
• how is per diem handled

This isn't a complaint or a dispute: many companies have a plan, they just don't advertise it.

And if you're on a 1099

The rules are different: expenses go on Schedule C, and almost everything listed above is deductible there.