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June 5, 2019
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Can a CA resident deduct employee expenses not reimbursed by their employer when filing STATE return?

  • June 5, 2019
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Best answer by KatrinaB48

Yes. California did not comply with the new tax law so unreimbursed employee expense are still deductible on your state return.

California is one of the states that allows you to claim itemized deductions even if you take the standard deduction on the federal return. Therefore, you will should enter your federal Itemized Deductions even if you don't claim them on your federal return so that they will transfer over to the state return. Please view the California link below for more information.

https://www.ftb.ca.gov/forms/2018/18_540cains.pdf



1 reply

June 5, 2019

Yes. California did not comply with the new tax law so unreimbursed employee expense are still deductible on your state return.

California is one of the states that allows you to claim itemized deductions even if you take the standard deduction on the federal return. Therefore, you will should enter your federal Itemized Deductions even if you don't claim them on your federal return so that they will transfer over to the state return. Please view the California link below for more information.

https://www.ftb.ca.gov/forms/2018/18_540cains.pdf



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July 5, 2020

The federal 1040 form doesn't allow you to enter your unreimbursed business expenses unless you qualify. My job is one that doesn't qualify but since California allows me to submit them, how do I include them in my federal form so CA can import them?

July 17, 2020

Appears that even though the Standard Deduction is taken for the federal 1040, when you click on Forms there is a Miscellaneous Itemized Deductions Worksheet which has certain fields ungrayed so one can key in Unreimbursed Employee Business Expenses which would then carry over to the CA state 540.