turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

5 Replies
AndreaG
New Member

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

I noticed that you have read some other questions and answers as well as an FAQ regarding this situation. However, it depends on your exact circumstances.

In order to take a deduction for your job related expenses, you would have to have unreimbursed employee expenses and/or certain other miscellaneous deductions that total more than 2% of your adjusted gross income, and only the amount in excess of the 2% is deductible. Please refer to pages 2-11 of pub 529 to learn more these types of expenses.  https://www.irs.gov/pub/irs-pdf/p529.pdf

Your adjusted gross income is on line 38 of Form 1040. To review the entries on your Form 1040:

  • Log in to your Turbo Tax account
  • click on "take me to my return"
  • Click on "my account" tab at the very top of the screen
  • Click on "tools"
  • Click on "view tax summary"
  • Click on "preview my 1040". This is part of a narrow white bar at the very top of the screen
  • When your 1040 form appears, you will be able to scroll through and look at the individual line items.
  • Click the "back" button when you want to return to your main Turbo Tax screen. The back button is part of a narrow white bar at the very top of the screen.

You would also have to qualify to itemize your deductions. To itemize your deductions, you would have to have personal expenses such as medical and dental expenses, mortgage interest, real estate taxes, unreimbursed job expenses and certain miscellaneous expenses, and charitable contributions that when combined together, total more than your standard deduction. For example if you file single, your standard deduction is $6300 so you would have to have personal expenses that total more than $6300.

If this response does not fit your situation, please provide more information so that I can address your concerns better. 

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

Hi - the job related expense deduction is much higher than 2% of AGI.  2% of our AGI is about $8000 while job related expenses are about $20,000.  Also, we are itemizing deductions which is greater than the standard deduction amount.  Would there be another reason why it is not adjusting?
AndreaG
New Member

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

You are subject to the alternative minimum tax. Unfortunately that means that miscellaneous itemized deductions, such as job related expenses are NOT deductible. I am including a very good Turbo Tax article that covers this topic in detail. Relevant headings include, "how can I escape the AMT?" and "line 5: miscellaneous itemized deductions". <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Alternative-Minimum-Tax--Common-Questi...>

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

Thank you!  That article was very helpful.
AndreaG
New Member

Why aren't my job related expense deductions reducing my federal tax due? Last year they did reduce our taxes due, but we made more money this year. Is there an income level that causes this or I am doing something wrong this year?

great!
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies