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
Yes
No
