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dcooley
New Member

Where do I enter Denver, Colorado Occupational Privledge Tax in Turbo Tax

My W2 from my employer included the Denver Occupational Privlege Tax (OPT) in Box 19 of my IRS Form W2 .  Where do I enter this tax on my return (or in TurboTax.
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Accepted Solutions
SusanH
New Member

Where do I enter Denver, Colorado Occupational Privledge Tax in Turbo Tax

Regrettably, the occupational privilege tax imposed by various cities is not considered an income tax and is not deductible on line 8 of schedule A.

It can be considered a job expense (form 2106) and deducted on line 21 of Schedule A, however this section must be at least 2% of your adjusted gross income in order to be included on your Schedule A.

IRS Pub 17 - Unreimbursed Employee Expenses (Occupational Taxes)


Form 2106 is part of Miscellaneous Itemized Deductions which must be a minimum of 2% of your Adjusted Gross Income to be included in your Schedule A. The total of Miscellaneous Itemized Deductions is combined with other Schedule A / Itemized deduction amounts which include Mortgage Interest, Real Estate Taxes, Charity and other Donations and more. 

 

The IRS allows you either a Standard Deduction or Itemized Deduction whichever is higher. TurboTax will default to which ever gives you the highest deduction, the total of Itemized Deductions or your Standard Deduction. 

 

This year the standard deduction for :

  • Single  or Married Filing Separate - $6,300
  • Married Filing Jointly or Qualifying Widow(er) - $12,600
  • Head of Household - $9,250

View solution in original post

1 Reply
SusanH
New Member

Where do I enter Denver, Colorado Occupational Privledge Tax in Turbo Tax

Regrettably, the occupational privilege tax imposed by various cities is not considered an income tax and is not deductible on line 8 of schedule A.

It can be considered a job expense (form 2106) and deducted on line 21 of Schedule A, however this section must be at least 2% of your adjusted gross income in order to be included on your Schedule A.

IRS Pub 17 - Unreimbursed Employee Expenses (Occupational Taxes)


Form 2106 is part of Miscellaneous Itemized Deductions which must be a minimum of 2% of your Adjusted Gross Income to be included in your Schedule A. The total of Miscellaneous Itemized Deductions is combined with other Schedule A / Itemized deduction amounts which include Mortgage Interest, Real Estate Taxes, Charity and other Donations and more. 

 

The IRS allows you either a Standard Deduction or Itemized Deduction whichever is higher. TurboTax will default to which ever gives you the highest deduction, the total of Itemized Deductions or your Standard Deduction. 

 

This year the standard deduction for :

  • Single  or Married Filing Separate - $6,300
  • Married Filing Jointly or Qualifying Widow(er) - $12,600
  • Head of Household - $9,250

View solution in original post

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