Miscellaneous Itemized Deductions subject to 2% AGI Limitation
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As from 2018, all the miscellaneous itemized deductions that are subject to the 2% AGI limitation were eliminated. This is inclusive of Employee Business Expenses that had been priorly reported on Form 2106. However, this does not apply to all states. This Schedule A menu is in the program for the states where these deductions are allowed only. |
Tax Years Prior to 2018
Some miscellaneous deductions can be included on Schedule A. the amount of these expenses that is more than the 2% of the adjusted gross income of the taxpayer is deductible.
Tax Return Preparation - Expenses for federal tax return preparation.
Safe Deposit Box Rental - the expense for a safe deposit box that is rental, in case it is utilized for the storage of taxable income producing stocks, bonds, or investment-related documents. The expense cannot be deducted in the event that the box is used for personal items only.
Investment Fees and Expenses - Fees as well as expenses related to their investments. Taxx Savage Pro pulls such amounts to Schedule A from other areas of the return. If need be, the amount can be adjusted manually.
Other Misc Deductions (Subject to 2%) - Expenses incurred so as to either produce or collect income subject to tax and manage or secure property held for earning income.
Union or Professional Dues - Membership of the Union as well as the fees for initiation and assessments for benefit payments to the union members who are unemployed. Expenses incurred for sick, accident, or death benefits and contributions made to a pension fund despite the union requiring that the contribution not be deductible. Job Search Expenses - The expenses connected to the search for a new job in their present occupation. Expenses incurred while seeking a new job in a different occupation are not deductible. Additionally, job search expenses are not deductible in the event that there was a substantial break between the end of the previous job and the time when you started searching for the new one or if this is the first job search for the taxpayer.
Uniforms - The cost and maintenance of work clothing if the clothes must be worn by the taxpayer as a condition of employment, and the said clothes are not for everyday wear.
Small Tools Used in Work - Tools that are utilized for work in case they fray and are discarded in the same year of their purchase.
Job Supplies - Supplies used for work.
Depreciation & Form 4562 - depreciation expense for computers they use for work at the convenience of the employer and is a requirement for employment. Check out Publication 529 for information on how to figure out depreciation expenses.
Business Use of Home Worksheet - Part of management expenses as well as depreciation of a home can be deducted in the event that the home is consistently and exclusively used for business. Such deductions can be made in the event that the home is the main place of busines or a meeting place for the taxpayer and their clients or customers for business purposes.
Other Unreimbursed Employee Expenses include:
- Business bad debt of an employee
- Business liability insurance premiums
- Damages paid to a former employer for breach of an employment contract
- Dues to a chamber of commerce if membership helps the taxpayer do their job
- Dues to professional societies
- Laboratory breakage fees
- Legal fees related to the taxpayer's job
- Malpractice insurance premiums
- Medical examinations required by an employer
- Occupational taxes
- Repayment of an income aid payment received under an employer's plan
- Research expenses of a college professor
- Rural mail carriers' vehicle expenses
- Subscriptions to professional journals and trade magazines related to the taxpayer's work
- Travel, transportation, meals, entertainment, gifts, and local lodging related to the taxpayer's work
- Work-related education
Additional Information:
IRS: Publication 529 - Miscellaneous Deductions (current year)
IRS: Publication 529 - Miscellaneous Deductions (2019)
IRS: Publication 529 - Miscellaneous Deductions (2018)