Deductions & credits

Unfortunately, posts on this forum were migrated here from an older board that use different software and everything got a 2019 date, even if they referred to prior tax seasons.  The ability for W-2 employees to deduct unreimbursed work-related expenses was eliminated in the 2018 tax reform act.  (That used to be on form 2106 but no longer.)   

Some states continue to allow deduction of work related expenses as a miscellaneous itemized deduction following the old federal rules.  TurboTax has always been designed that you enter all your information in the federal section and then it flows downhill to your state return, so TurboTax still asks for work-related expenses in the federal section. They may flow downhill to your state tax return if you itemize your deductions on your state tax return.


Work-related expenses for W-2 employees used to include assets as well as expenses.  For example, a car mechanic who is a W-2 employee of an auto dealership but bought all their own tools, could list the tools as depreciable assets.  So as a W-2 employee, you are able to enter a bicycle as an asset if it is a necessary and ordinary item required in your work.  That means that a bicycle messenger could enter their bike as an asset, but an office manager who used the bike for commuting cannot, because the bike is not an ordinary and necessary expense of doing the job of office manager.

 

I should apologize because when I read your original post I guess I assumed you were an independent contractor like a bike messenger or delivery person trying to enter a bike as a business asset.  If you only use it for commuting, you would not list it as a work asset.

Your employer could choose to provide employee's assistance with commuting costs, but I believe that all such assistance would have to be included as part of your taxable wages under the current laws.