What are miscellaneous itemized deductions?
Miscellaneous itemized deductions are certain nonbusiness expenses that
individuals as taxpayers who otherwise itemize deductions may take
against their taxable income. Such miscellaneous expenses are allowed
only to the extent that they exceed 2-percent of a taxpayer’s adjusted
gross income. Miscellaneous itemized deductions may also be limited by
the overall itemized deduction phase-out.
These expenses include employee business expenses, expenses of
producing income, expenses related to filing tax returns and certain
hobby expenses. Specifically, the miscellaneous itemized deductions
available to a taxpayer are:
- Professional society dues;
- Employment-related educational expenses;
- Home office expenses;
- Professional books, magazines and journals;
- Work clothes and uniforms;
- Union dues and fees
- A portion of unreimbursed business-related meal and entertainment expenses;
- Other unreimbursed employee business expenses;
- Employee expenses for which reimbursements are included in income;
- Rental of a safe-deposit box;
- Expenses incurred for tax counsel and assistance;
- Costs of work-related small tools and supplies;
- Investment expenses;
- Fees paid to an IRA custodian; and
- Certain expenses of a partnership, grantor trust or S corporation that are incurred for the production of income.
Additionally, there are some miscellaneous expenses that are not subject
to the 2-percent of adjusted gross income limitation. These include:
There are many miscellaneous deductions and a number of very
specific rules that may apply to any one. Please contact this office if
you have questions about claiming the miscellaneous deductions and how
they will affect your tax picture.
- Bond premium amortization for taxable bonds;
- Gambling losses for the year up to the extent of gambling winnings;
- Casualty and theft losses associated with income-producing assets; and
- Federal estate tax on income in respect of a decedent.