Deductions & credits

All miscellaneous itemize deductions subject to 2% rule, which includes hobby expenses, were eliminated from the federal tax return with 2018 tax reform. Some states still use the old rules for itemized deductions, so TurboTax still allows you to enter them, and if you would benefit by deducting them on your state tax return, TurboTax will transfer them to your state tax return. They are not federal deductions.