Where do I deduct fuel expenses for a vehicle that I drove for work but did not own?

Unfortunately, this is no longer a deductible expense on the federal return. The Tax Cut and Jobs Act (TCJA) eliminated unreimbursed employee expense deductions for all but a handful of protected groups. The TCJA restriction lasts until 2026 when miscellaneous itemized deductions are slated to return for all employees. Unreimbursed employee expenses don’t apply to those who aren’t classified as employees.

The federal return no longer allows a deduction for employee business expenses. There are a few states that still allow these deductions. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania all provide a deduction for unreimbursed employee business expenses on their respective state income tax returns.

If you live in one of the states that still allow employee business expenses as a deduction, you would enter this in the federal return, and the information will be transferred to your state return.

Here's how to enter the information:

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Employment Expenses
• On Job-Related Expenses, click on the start/update button
• Once in this section, you can enter union dues and any other employee expenses.