You’ll find that filing your taxes as a teleworker is much the same as it was as a regular employee. You probably know the drill: Your employer deducts income tax from your paychecks and reports this information to the IRS. Once a year, your employer gives you an IRS Form W-2, Wage and Tax Statement, showing your wages and withholding for the year,
which you’ll include with your income tax return. That allows the IRS to compare the amount of income you report with the amount your employer claims you were paid.
If you have unreimbursed employee expenses, you can list them on IRS Schedule A as itemized deductions. You would
not report any reimbursed jobrelated expenses you received from your employer, and your employer wouldn’t report those payments to you as income (on your W-2). If you get reimbursements for workrelated expenses, you don’t report them as income, although your employer can deduct the payments to you as a business expense.