I work in the airline biz, and can deduct the differences between what we get paid while at work (away from home), and what the CONUS per diem rate. Turbotax is asking me to choose one of the 5 options, and 4 of them doesn't apply to me, and the last one says "misc 2% itemized deduction". What does that mean? The software seems to want me to pick one.
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The "2% rule" allows employees to deduct certain miscellaneous itemized deductions -- which included things like unreimbursed job expenses, tax prep, investment, advisory fees, and safe deposit box rentals -- that exceed 2% of their adjusted gross income, provided they itemize their deductions.
This rule no longer applies on federal tax returns, but is retained by some states.
You don't say what state return your filing, but based on what you're saying, your state must be using the 2% rule. You don't say what the other options are but, since the other four don't apply to you, the 2% rule most likely does. If you're unsure, you should check the instructions for your state tax return. See the TurboTax article How do I contact my state Department of Revenue? to find your state's revenue office website.
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