What is the job-related expenses deduction?

Job-Related Expenses Deduction:

The first thing you should know about the Job-Related Expenses Deduction is that it is very difficult to qualify for this deduction. That’s because the expense limit is so high. In order to qualify, your job-related expenses must be more than 2% of your AGI (adjusted gross income).
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Example: If your AGI is $40,000, your expenses would have to be more than $800 ($40,000 x 2%). Even then, you could only deduct the amount over $800. So, if your job-related expenses were $1,000 you could only deduct $200 ($1,000 – $800).
If you decide it might be worth it to enter your info, TurboTax automatically calculates whether you qualify for the Job-Related Expenses Deduction. Just enter information about your income and your job-related expenses and we’ll take care of the rest.
Other Things to Know About This Deduction
  • The expenses must be required by your employer or necessary for you to do your job.
  • You can’t deduct education expenses that are necessary to meet the minimum requirements for the job. So, if you are an administrative assistant and typing is a requirement for your job, you can’t deduct the cost of taking a typing class.
  • If your expenses are high enough, as mentioned above, you might be able to deduct expenses to look for a job.

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