Other Miscellaneous Deductions Menu
The items below can be deducted as miscellaneous itemized deductions. The 2% limit does not apply to them.
Amortizable Premium on Taxable Bonds - Bond premium is the difference between the principal amount and the amount the taxpayer pays for a bond, whereby the amount paid by the taxpayer is more than the principal amount. In the event that the taxpayer chooses to amortize the premium on bonds that are subject to tax, such amortization can be deducted in order to cancel interest income on the bond.
Bond premiums that can be deducted include (Publication 529):
- Pre-1998 election to amortize bond premium - normally, in case the first time you elected to amortize bond premium was before 1998, the bonds acquired before 1988 will not be offered the same treatment as the premium above.
- Bonds acquired after October 22, 1986, and before 1988 - when the premium of these bonds are amortized, they will be investment interest expense that are subject to the investment interest limit except when you choose to regard them as as a cancellation of interest income on the bond.
- Bonds acquired before October 23, 1986 - When the premium of these bonds are amortized, they will be regarded as miscellaneous itemized deductions that are not subject to the 2% limit.
- Deduction for excess premium - On some bonds, for instance, bonds paying a variable rate of interest or those that offer an interest free period, the bond premium amount allocable to a period may be more than the amount of stated interest allocable to the period. In the event that happens, the excess is treated as a miscellaneous itemized deduction to which the 2% limit does not apply. The amount by which the total interest inclusions on previous periods bond is more than the amount regarded as bond premium deduction on the bond in previous periods forms the limitation to the deductible amount. In the event that the limit prevents the deduction of the excess bond premiums, this amount will carry into the following period and is regarded as bond premium allocable to that period.
- Pre-1998 choice to amortize bond premium - in case you elected to amortize the premium on the bonds subject to tax prior to 1998, the bond premium amortization that is more than your interest income can be deducted only for the bonds that are gotten within 1998 and the successive years.
Fed Estate Tax on Income in Respect of a Decedent - Taxpayers are able to deduct the federal tax that can be attributed to income in respect of a decedent that as the beneficiary was included in their gross income. Check out Publication 559 for more information on how to figure out the amount of this deduction.
Impairment-Related Work Expenses - taxpayers who are physically or mentally disabled to the extent that the disability hinders them from acquiring employment, or participating in activities such as walking, speaking, learning, etc, can deduct impairment-related work expenses if:
- The item or service makes it possible for the taxpayer to work
- The item is a necessity due to the disabling impairment of the taxpayer
- The taxpayer pays the cost, which is not reimbursed
- The expense is reasonable; the standard charge for the item is what was spent by the taxpayer
- The expense was for a month in which the taxpayer worked.
Repayment under Claim of Right - In the event that the taxpayer paid back an amount exceeding $3,000 that had been included in their previous year income, they will be able to deduct the repaid amount or take a credit against their tax. For more information, check out Publication 525.
Also included is the gambling losses to the extent of gambling winnings.
Additional Information:
IRS Publication 529 - Miscellaneous Deductions (2018)