** TAX YEAR 2018 or earlier** Are Unreimbursed employee expenses are subject to the 2% limi? It means if my employer didn't reimburse my (W2) business expenses I have lost my money? Pro license too?

[Marketstar · Accepted solution]

Per the IRS, to deduct unreimbursed employee business expenses, you must

1. Have enough itemized deductions (ie. Medical, mortgage interest, property taxes, charitable giving, ect) to exceed your Standard Deduction.

2. If you itemize, your deduction is limited to the extent that it exceeds 2% of your Adjusted Gross Income.

So, you may not gain a tax benefit for this deduction due to the above limitations.

For example, if you itemize your deductions and your Adjusted Gross Income is $50,000, 2% would equal $1,000

You can only deduct the dollar amount that exceeds $1,000

Your pro license is a deductible expenses, but it is subject to the same limitations as above.

[leogrande]

I am just curious why TurboTax doesn't inform its users about this 2% limitation when it comes to the Miscellaneous Deductions? I have entered all my deductibles into the "Miscellaneous Deductions" and just wasted my time and efforts. I know that some other online tax preparation services provide the calculated 2% before users proceed to the "Miscellaneous Deductions" section.

[Marketstar]

Your observation is duly noted and will be passed on to management. TurboTax appreciates your business.