UPDATE: The following answer applies to 2017 and earlier. For 2018 through 2025, under the new tax law, there is no way for an employee (who gets a W-2) to claim a tax deduction for the agency fee.
You can enter the agency fee as a job-related expense, but it might not make any difference in your taxes. Job-related expenses are a miscellaneous itemized deduction subject to the 2% of AGI limitation. That means that 2% of your AGI (Adjusted Gross Income) is subtracted from your total miscellaneous itemized deductions. Only the remaining amount is deductible. In addition, the deduction will not have any tax benefit unless your total itemized deductions are more than your standard deduction.
Here's how to enter job-related expenses in TurboTax.
- Click the Federal Taxes tab. (In TurboTax Home & Business click the Personal Tab.)
- Click Deductions & Credits.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2016 Deductions & Credits," scroll down to the Employment Expenses section.
- Click the Start, Update, or Revisit button for Job-Related Expenses.
