Question

I have added job related expenses, but I didn't see a change to my return. How does it affect my return?

Forum|Forum|7 years ago
June 4, 2019
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TurboTax Deluxe Online

Employee

Job-related expenses are reported as a miscellaneous expense using Form 2016. However, as a W2 employee they are difficult to actual deduct from your taxes (and thus see any tax benefit). This is because they are subject to a 2% floor. Under the 2% rule, you're only allowed to deduct the portion of total miscellaneous expenses that exceeds 2% of your adjusted gross income (AGI).

Example: You have AGI of $50,000. Thus, under the 2% rule you would only be able to deduct the amount of expenses that exceeds $1,000. So, the first $1,000 would not be deductible.

You must also be able to itemize your deductions to benefit from these expenses. This means your total allowable itemized deductions (things like mortgage interest, property taxes, charitable, medical, and job related) must exceed the standard deduction ($6,300 if single or $12,600 if married filing joint) before you see any tax benefits from adding the itemized deductions.

https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule

You can read more about deducting Employee Expenses here

https://ttlc.intuit.com/questions/2902800-where-do-i-enter-job-related-employee-expenses-form-2106

J

johanajarama

in my situation, I do exceed the 2 percent of the total income, but still don't see a benefit. I dont exactly understand th second part to your explanation- (You must also be able to itemize your deductions to benefit from these expenses. This means your total allowable itemized deductions (things like mortgage interest, property taxes, charitable, medical, and job related) must exceed the standard deduction ($6,300 if single or $12,600 if married filing joint) before you see any tax benefits from adding the itemized deductions.)