Job-Related Expenses - Needs Review Message

[CASherm]

After I enter Job-Related expenses using Deluxe 2024, under the Smart Check column (on the Deductions & Credits screen), it states "Needs Review."  I've clicked on "Update" several times and gone through every question and yet when I click on done, It still shows "Needs Review."

[xmasbaby0]

Are you a W-2 employee?

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.

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

[CASherm]

Thanks for your response. Yes, I am a W-2 employee.  I thought that W-2 employees could not deduct job related expenses but I wasn’t sure why TurboTax kept displaying the message that the job related expenses I entered needs review.  I was thinking I was entering something incorrectly.

[tphtph]

Same with me.    EXTREMELY frustrating to see the "needs review" message after I've gone through every single question  dozen times.   Future enhancement request is for TurboTax to tell us SPECIFI ALLY what needs a review.  The Job-Related expenses area consists of dozens of topics and questions and sub-topics.  Obviously, TT does not like one of my answers, but it doesn't say which.

[AmyC]

Your state may allow employee expenses. If not and you do not qualify at the federal level, you can delete them. If you reply with your state, we can tell you if employee expenses are allowed.

For exceptions, About Form 2106, Employee Business Expenses states: Use Form 2106 if you were an Armed Forces reservist, a qualified performing artist, a fee-basis state or local government official, or an employee with impairment-related work expenses.

@tphtph 

[CASherm]

I live in California 

[MonikaK1]

California still allows miscellaneous itemized deductions for employee business expenses on Schedule A, and, as others have noted, they are still entered on the Federal return and will flow through to the California state return.

If you entered them in your Federal return and still see Needs Review, are you able to run the Federal Review with no errors? 

[CASherm]

Yes I am able to run it without any errors

[MonikaK1]

Thanks for the update. If your return is able to proceed without errors, then your employee business expenses that you entered in the Federal section should show on your California return. The expenses will be limited to those that exceed 2% of your Adjusted Gross Income. 

When you've completed your California return, you can see a summary of any differences between the Federal and state returns on California Schedule CA.

@CASherm 

[shinsangeun]

I even deleted everything under Job-Related Expenses but it still shows 'Needs review'.

[DawnC]

Job-related expenses are not deductible on your federal return.    If you are in a state that allows the deduction, you can ignore the Needs Review message and continue your return.   You will go through a Complete Check before filing that will notify you of any errors. 

If your state doesn't allow the deduction, you should delete Form 2106 from your return.  @shinsangeun 

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

[MFB7]

I am having the same error message (green "Needs review") under Job-Related Expenses, never had this problem before on previous tax returns. I am using the Deluxe 2024 and I live in GA. The expenses amount I am filing is for 2 different W-2 jobs at different times of the year of 2024, same home office space within our home. The link above does not open up to a list of states as specified. I want to know if this issue is making or breaking our return, if the program is not catching the error. I did the 'Smart Check' review and it says no errors. Please advise.

[DawnC]

The Needs Review message won't prevent e-filing.    However, Georgia residents that are W-2 employees cannot deduct job-related expenses.     @MFB7 

Are Job-Related Expenses tax deductible?   You may need to delete Form 2106.

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

[PaddyH]

I am also a California resident.   I get get the same error.   I  spent two hours on the phone with Turbotax technical support.   If they know you are a California resident because you are filing a California State return, why can't they fix this error?

[BrittanyS]

The needs review shows as a reminder that the "Job Related Expenses" you entered on your federal return will not be entered on your federal return.  This is occurring because job-related expenses are not allowed for W-2 earners.  However, many states (California included) allow the deduction and the expenses are moved from the federal return to the state return.  The needs review does not prevent e-filing and only stands as a reminder that the information will not be included on your federal return.  If this step was excluded then many individuals may assume the information is being included on their federal return and become confused as to why their return wasn't filed with the "Job Related Expenses" on their return.

• Job Related Expenses

@PaddyH