Can I Claim Miscellaneous Deductions on My Tax Return?
You can only claim miscellaneous deductions on your tax return if you itemize. This occurs when the total of your itemized deductions is greater than your standard deduction and you file a Schedule A reporting the itemized deduction amount. Your standard deduction is a fixed amount you can deduct based on your tax return filing status. Find out whether you should itemize or use the standard deduction.
What Are Miscellaneous Deductions?
Miscellaneous deductions are deductions that do not fit into other categories of the tax code. There are two types of miscellaneous deductions:
What Are the Miscellaneous Deductions Subject to the Two Percent Limit?
Important: All miscellaneous deductions subject to 2% of your AGI are eliminated for Tax Years 2018-2025. We will keep this information for 2017 and earlier Tax Return, as well as for 2026 and later Tax Returns.
Miscellaneous deductions subject to the 2% limit fall into the following three categories:
What Are Unreimbursed Employee Expenses?
Unreimbursed employee expenses include:
- Business bad debt of an employee
- Business liability insurance premiums
- Damages paid an employer for breach of an employment contract
- Depreciation of a cell phone or computer that your employer requires you to use with your work
- Dues to a chamber of commerce if membership helps you do your job
- Dues to professional societies
- Educator expenses (above any amount you can deduct as an adjustment to income)
- Home office or part of your home used regularly and exclusively in your work
- Job search expenses in your present occupation
- Laboratory breakage fees
- Legal fees related to your job
- Licenses and regulatory fees
- Malpractice insurance premiums
- Medical examinations required by an employer
- Occupational taxes
- Passport for a business trip
- Repayment of an income aid payment received under an employer’s plan
- Research expenses of a college professor
- Rural mail carrier's vehicle expenses
Can I Deduct Tax Return Preparation Fees?
You can deduct tax return preparation expenses accrued in the year that you pay them, such as software or filing charges. However, you cannot deduct the convenience charge for paying your tax by credit card.
What Other Expenses Can I Claim as Miscellaneous Deductions?
Other expenses you can claim as miscellaneous deductions include:
What Miscellaneous Tax Deductions Are Not Subject to the Two Percent Limit?
Miscellaneous tax deductions that are not subject to the 2% limit include:
- Amortizable premium on taxable bonds
- Casualty and theft losses from income-producing property
- Federal estate tax on income in respect of a decedent
- Gambling losses up to the amount of gambling winnings
- Impairment-related work expenses of persons with disabilities
- Repayments of more than $3,000 under a claim of right
- Unrecovered investment in an annuity
Where Can I Find More Information on Miscellaneous and Other Tax Deductions?