Since you are an employee, you cannot deduct any job-related expenses. That is true for 2018 through 2025 under the tax law that was passed in 2017. The fact that your employer pays you an extra allowance because of your expenses does not make those expenses deductible.
Some states might allow a deduction for job-related expenses on the state tax return.
The monthly allowance that your employer pays you is just extra pay, no matter what the employer calls it. The employer is reporting it improperly. It should be included in the wages on your W-2. All payments from an employer to an employee should be treated as wages and be included in the employee's W-2, no matter what the employer says it is for. However, there is a way to report the 1099-NEC correctly on your tax return, in spite of your employer's error.
To enter your 1099-NEC, type 1099-nec in the search box, then click the link that says "Jump to 1099-nec." After you enter the information from the 1099-NEC you will come to a screen that asks "Does one of these uncommon situations apply?" Select "My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2." Then click Continue. On the next screen select "I received Form W-2 and this Form 1099-NEC, but all the income reported on this Form 1099-NEC should have been included on my Form W-2."
TurboTax will include Form 8919 in your tax return. Form 8919 calculates the Social Security and Medicare taxes that your employer should have withheld on the additional payment. The total of these taxes will appear on Schedule 2 line 6 and will be included in your total tax liability.
