For my daughter a W2 employee hair stylist in New Jersey.

[britgeezer]

Understand Federal deductions have changed, but what about NJ.

Especially commercial parking costs that are not $ supported by employer.

Most information is for self-employed or chair renters.

[xmasbaby0]

W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

Sorry---NJ is not on that list.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return  to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

And....the costs of commuting to work---including mileage, parking, buses, rideshares, trainfares, etc are never deductible.

[AmyC]

I believe you are asking if an employee can deduct costs related to the job. NJ does not allow deductions, see page 9 of NJ instructions for employee expenses. 

[britgeezer]

Understood for NJ 😟

For federal, doesn't 2023 change allow deduction of tools i.e.. scissors and consumable less than $2500 to be straight deducted rather than amortized. It's never clear whether this is self-employed only but "employed" stylists incur the same costs.

[xmasbaby0]

Sorry---no.   There are no exceptions made for hair stylists.   W-2 employees cannot deduct job-related expenses on a federal tax return.   

[britgeezer]

Thanks for the clarification. :(

The many guides I have read online (Stride, Behindthechair.com, etc.) don't make it clear that most of the rules and guides they reference are only for self-employed / contractor stylists, even though in the case of BTC they show how to differentiate between employee and independent contractor/ owner.

BTC does in fact state that W2 employees may deduct workplace expenses, but that the total itemized deductions must exceed the std deduction and meet the "2% floor", i.e. be greater than 2 % of AGI.

[xmasbaby0]

That 2% stuff was only applicable to job-related expenses before 2018 on federal returns.   The tax law changed for 2018 and W-2 employees cannot get any federal deduction for job-related expenses.  Only certain states    (AL, AR, CA, HI, MN, NY or PA)    still allow job-related expenses for W-2 employees.

Sorry---your daughter has a tough job on her feet all day, and had expenses.  But the expenses are not deductible.