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genobx2
New Member

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

California allows unreimbursed employee business expenses to be deducted on state returns, unlike the Federal return that dropped the deduction with the new tax laws. I do not know where to enter it on the state return, nor do I know if the entire amount is deductible. I was expecting Turbo Tax to walk me through it, but no luck. Thanks!

1 Best answer

Accepted Solutions
IreneS
Intuit Alumni

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

Unreimbursed Employee Business Deductions are deductible on your California return, but are entered in the interview for the federal return.  They will then flow to your California State return.

Here's how to do it:
  1. In your return, click Federal Taxes > Deductions & Credits > I'll choose what I work on
  2. Scroll to the Employment Expenses section and click the Start/Update box next to Job-Related Expenses.
  3. Continue through the interview entering your expenses.
  4. When you go into your CA return, you will see your Employee Business Expense Adjustment on the screen, Here's the income that California handles differently.
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6 Replies
IreneS
Intuit Alumni

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

Unreimbursed Employee Business Deductions are deductible on your California return, but are entered in the interview for the federal return.  They will then flow to your California State return.

Here's how to do it:
  1. In your return, click Federal Taxes > Deductions & Credits > I'll choose what I work on
  2. Scroll to the Employment Expenses section and click the Start/Update box next to Job-Related Expenses.
  3. Continue through the interview entering your expenses.
  4. When you go into your CA return, you will see your Employee Business Expense Adjustment on the screen, Here's the income that California handles differently.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
genobx2
New Member

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

Thank you very much for your prompt and accurate answer!
addy
New Member

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

I entered them  per instructions. they show up on interview but not giving me a deduction in my CA taxes

JotikaT2
Expert Alumni

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

It depends.

 

Is it possible that your itemized deductions on your state return are still below the threshold amount?

 

They would only be deductible if the unreimbursed employee business expenses exceed 2% of your federal Adjusted Gross Income, and if the total of your itemized deductions exceed the standard deduction amounts as listed below.

 

Standard deduction for CA

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Joe_511
New Member

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

(yes, I'm still filing my 2019 taxes...)  I understand that I can deduct my non-reimbursed job-related expenses from my CA returns (but not Federal).  Does Turbo Tax do this by way of Form 2106? 

 

I see that Form 2106 has been filled out in my case, HOWEVER, it says at the top of the form that it is to be used ONLY if you are an Armed Forces reservist, qualified performing artist, fee-basis state or local government official, or employee with impairment-related work expenses.

 

I am none of those things.  But I am self employed.  Is it accurate for me to be filing the Form 2106?  If not, how can I (or what form do I use to) deduct my non-reimbursed job-related expenses from my CA returns? 

xmasbaby0
Level 15

How do I handle deducting Unreimbursed Employee Business Expense deductions on my California State return?

@Joe_511 If you are self-employed your business expenses are entered on a federal Schedule C.  They are not entered as unreimbursed employee expenses.   You are not an employee.

 

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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