Initially, I checked that I didn't have W-2 employees by accident. I've edited it to fix my error, but have not been prompted to enter the expenses associated with salaried and hourly support.
@EBinPC I believe he is referring to paying his employees W-2 wages and not unreimbursed employee expenses. Once you select that you paid W-2 wages, it will generate the "employee wages and work credit" expense listed in the options of expenses to choose from. There are other employee selections as well to choose from such as
Under your FEDERAL TAXES go to Job Related Expenses Summary, enter your occupation and follow the prompts. WARNING: There are new deductibility rules that apply this year and very few people will qualify for this deduction. Only a very few occupations/statuses can deduct these this year.
@EBinPC I believe he is referring to paying his employees W-2 wages and not unreimbursed employee expenses. Once you select that you paid W-2 wages, it will generate the "employee wages and work credit" expense listed in the options of expenses to choose from. There are other employee selections as well to choose from such as
Hi,ZoltanB45: I used to deduct quite a few unreimbursed employee expenses, but wanted to be sure I was giving the proper response. I checked on the eFile website, and found this: " One of the results of the Tax Cuts and Jobs Act was removing the deduction for un-reimbursed employee business expenses until 2026 Tax Returns. This means that employees can no longer reduce their taxable income by deducting employee business expenses (as listed below) or job search expenses. Overall, most taxpayers might actually fair better with the higher standard deductions compared to the previous employee expense tax deductions." Perhaps we are comparing apples and oranges, and I do not hold myself out as any kind of expert. So, I'll defer to you.
You are correct, you are talking about apples and oranges. No, expenses an employee incurs doing their jobs are no longer tax deductible. If you receive a W2 you can no longer deduct your home office expenses, your uniform costs, your business mileage or multiple other expenses. These were all reported on Schedule A. Multiple expenses on Schedule A are disallowed through 2025.
However, if you are an employer, you can still deduct the expenses for your employees, this includes wages, salaries, mileage reimbursement, health insurance costs, etc. The deductions on a Schedule C or a business return did not change. This is where these costs would be reported.
The OP appears to be an employer trying to deduct the expenses of their employee, not an employee trying to deduct their own expenses.
That is what I expected to find, but that category is not there. When I initially started filling out everything, I accidentally checked that I didn't have W2 employees. I've since updated it, however I'm still not being prompted to enter in those expenses. I wasn't sure if there is a way to manually enter it or override it within turbotax.
There is a section in your business profile under the Payments and Identification category. You will select/edit that you paid Paid W-2 employees. Once this selection is made, there will be an expense category that will open up in your expenses section entitled Employee wages and work credits.
@allissa-reimer