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New Member
posted Jun 5, 2019 3:00:52 PM

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!

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1 Best answer
Intuit Alumni
Jun 5, 2019 3:00:54 PM

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.

6 Replies
Intuit Alumni
Jun 5, 2019 3:00:54 PM

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.

New Member
Jun 5, 2019 3:00:55 PM

Thank you very much for your prompt and accurate answer!

New Member
May 27, 2020 3:44:22 PM

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

Employee Tax Expert
May 29, 2020 1:21:35 PM

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.

 

New Member
Dec 16, 2020 8:12:11 PM

(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? 

Level 15
Dec 16, 2020 8:33:36 PM

@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