Get 1998 Form 2106. Employee Business Expenses

Can you deduct non-reimbursed employee expenses on your state (California) return, since they are no longer allowed (form 2106) on the federal return? Yes, you can still deduct unreimbursed employee expenses on your CA state income tax return.

Unfortunately, the Tax Cuts and Jobs Act of 2017 suspended the deduction for unreimbursed employee costs. But the state of California doesn't conform to most of the act's guidelines. So if you're a California resident, you can claim this deduction on your state tax return.

For tax years 2026 and later, employees can deduct from Massachusetts gross income, to the same extent as allowed under Code § 62(a)(2)(A) in effect on January 1, 2022, their employee business expenses that are reimbursed under an employer's reimbursement or other expense allowance arrangement.

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, he said.

Key Takeaways. You can only deduct your tax preparation fees on your federal income taxes if you are self-employed or a statutory employee. The deduction is for business costs and fees only, not personal costs incurred when filing your taxes. You can deduct your state tax preparation fees, too.

Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses, to take the deduction.