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Why is it that no matter how much I enter in job expenses, it does not reduce my tax?? I have not met the income threshold, and I am way above the standard deduction.

 
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FaithY
Expert Alumni

Why is it that no matter how much I enter in job expenses, it does not reduce my tax?? I have not met the income threshold, and I am way above the standard deduction.

To help diagnose your issue, I suggest the following:

Find the itemized deduction amount by previewing your 1040 (see instructions below) to see the amount of your itemized deductions (you said you were way above the standard deduction amount, but it doesn't hurt to check on the actual form).

The portion of your unreimbursed employee business expenses (job expenses) that exceed 2% of your adjusted gross income (AGI) are deductible, but you may not have picked a high enough number for your tax to be reduced. 

Locate your AGI by using Preview my 1040, multiplying your AGI by 2%, then subtract total job expenses from 2% of your AGI.

For example: your AGI is $50,000 times .02= $1,000. The total of your job expenses is $1,500. $1,000 less $1,500= $500. The $500 would be added into the total of your other itemized deductions on Schedule A.        

To preview your 1040 follow these steps: 

  1. Click "Tax Tools" (On the left in black)
  2. Click "Tools"
  3. Click "View Tax Summary" under "Other helpful links…"
  4. Click "Preview my 1040" its on the left in black.              
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