No, you are not able to deduct those expenses if you are an employee with wages reported on a W-2.
The federal return no longer allows a deduction for employee business expenses. There are a few states that still allow these deductions. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania all provide a deduction for unreimbursed employee business expenses on their respective state income tax returns.
If you live in one of the states that still allow employee business expenses as a deduction, you would enter this in the federal return, and the information will be transferred to your state return.
Here's how to enter the information:
- Click on Federal Taxes (Personal using Home and Business)
- Click on Deductions and Credits
- Click on I'll choose what I work on (if shown)
- Scroll down to Employment Expenses
- On Job-Related Expenses, click on the start/update button
- Once in this section, you can enter union dues and any other employee expenses.
But if you are an independent contractor and receive a 1099-NEC to report your income, those expenses can be included in the Schedule C that you will file.
You can enter Form 1099-NEC in the Other Common Income section under Wages & Income. However, since it is considered self-employment income, I recommend you start a Schedule C to decrease your taxes with the ordinary and necessary business expenses.
To enter Form 1099-NEC as self-employment, under Wages & Income, scroll down to Self-Employment and select Show More and Start.
For more details, see: What is Form 1099-NEC?
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