Information courtesy of IRS
Miscellaneous deductions can cut taxes. These deductions include certain expenses you paid relating to work as an employee. Remember, you must itemize deductions when you file to claim these costs.
Follow these guidelines:
- Deduct subject to a limit. Deduct miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:
- Unreimbursed employee expenses
- Job search costs for a new job in the same line of work
- Some work clothes and uniforms
- Tools for your job
- Union dues
- Work-related travel and transportation
- The cost you paid to prepare your tax return ( including cost you paid for tax preparation software and any fee paid for e-filing of your return)
- Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit:
- Certain casualty and theft losses (usually this rule applies to damaged or stolen property you held for investment; but may include property such as stocks, bonds and works of art)
- Gambling losses up to the total of your gambling winnings
- Losses from Ponzi-type investment schemes
- There are many expenses that you can’t deduct, such as personal living or family expenses.
- Use Schedule A to claim allowable miscellaneous deductions.
For additional information, give us a call.
