Chloe, a single taxpayer, is employed as a global travel manager. She incurred $4,000 in unreimbursed employee business expenses that exceed 2% of her adjusted gross income. Following California law, how are her employee business expenses reported on her California return?

Enter the total amount paid on Schedule CA (540), Part II, line 21.

Prepare federal Form 2106, using California amounts. Enter the amount from line 10 of federal Form 2106 on Schedule CA (540), Part II, line 19.

Prepare federal Form 4684, using California amounts. Enter the difference between the federal and California amount on Schedule CA (540), Part II, line 15, column B or column C.

Under federal law, the deduction for unreimbursed employee expenses subject to the 2% floor is suspended. California conforms, so no deduction is allowed

Answer rating: 100% (QA)

ANSWER An employee could deduct unreimbursed job expenses to the extent these expenses along with certain other miscellaneous expenses were more than ... View the full answer