Under current federal law (Tax Cuts and Jobs Act), the deduction for miscellaneous itemized deductions subject to the 2% AGI floor, such as investment expenses and employee business expenses, is suspended. Some states still allow these deductions.
You could ask your employer if they would be willing to set up an accountable plan for reimbursement.
Under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or reimbursement policy (not necessarily a written plan) is considered an accountable plan if: There is a business connection to the expenditure. There is adequate accounting by the recipient within a reasonable period of time. Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)
California does not conform to that change. You can enter any miscellaneous itemized deductions that are still allowable for California in the Federal section of TurboTax under Deductions and Credits and they will carry over to your California return if you itemize your deductions and have enough to exceed the adjusted gross income limitation.
See the Instructions for California Form 540 for more information.
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