Rent as a job expense for W2 work is not deductible on the Federal tax return. It may be deductible, or they may be a renters credit, on the state return.
To enter unreimbursed employee expenses in TurboTax Online:
- You should be signed into TurboTax and be working in the return.
- On the black left-hand menu, choose Federal.
- Then choose Deductions and Credits.
- Scroll down, choose More Deductions and Credits if you have to.
- Click Show More in Employment Expenses
- Click Start or Revisit for Job Expenses For W2 Income.
For people working a straight W2 job, expenses for that job are not deductible for the years 2018 through 2025. The Tax Cuts and Jobs Act eliminated Misc. Expenses subject to the 2 percent floor for that period of time. Job expenses that were formerly included in that deduction are not deductible.
Some states (like California) still let you deduct unreimbursed job expenses. Some states also have credits for renters (like Missouri and New Jersey). Check the Department of Revenue website in the state you live in.
For more information about unreimbursed employee expenses, click here. If you are paid as an independent contractor with a 1099MISC, click here.
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