Can I claim unreimbursed expense from 2005, which I could not submit in 2005 tax returns,in 2006 tax returns ?

Question

I incurred employee expense during business trip in the last quarter of 2005 and didn't include it in 2005 returns as I was expecting the reimbursement. Since I didn't get reimbursement for it , I would like to include it as 'unreimbursed expenses' in itemized deductions in 2006 tax returns. Is it allowed ?

Answer 1

Pull the 1040X form and ammend your taxes for 2005. That is the safest and easiest way to claim the expenses. I believe you can carry them forward onto 06 under certain circumstances, such as self employement (truckers).

Basically, most taxpayers are 'cash' basis, meaning they deal with expenses and income realized in the tax year only.

So ammend 05. Your refund will take a while.

Answer 2

No, you can't deduct expenses paid in 2005 from your 2006 return, but you can amend your 2005 return and claim them there.

Answer 3

You must amend 2005 and add the expenses. You have to keep everything that happened in 2005 on that years return.