Publication 529: Miscellaneous Deductions

The Internal Revenue Service (IRS) Publication 529, previously titled "Miscellaneous Deductions," explained itemized deductions that taxpayers could deduct from their taxable income on Schedule A of Form 1040 or Form 1040NR. However, significant tax law changes were introduced by the Tax Cuts and Jobs Act of 2017. As a result, for tax years after 2017, taxpayers generally cannot claim miscellaneous itemized deductions subject to the 2% of adjusted gross income (AGI) limitation.

What it Was?

Publication 529 outlined various expenses that could be claimed as miscellaneous itemized deductions on Schedule A. These deductions were subject to a 2% of adjusted gross income (AGI) threshold. In simpler terms, taxpayers could only deduct the amount exceeding 2% of their AGI.

What Changed:

The Tax Cuts and Jobs Act of 2017 eliminated the miscellaneous itemized deduction category for most taxpayers.

Who Can Still Use Publication 529?

There are limited exceptions for certain employee expenses:

Unreimbursed employee expenses: You can still deduct certain unreimbursed employee expenses ordinary and necessary for your job. This can include work-related travel, uniforms, and home office expenses if you meet the IRS qualifications.

Can I still claim miscellaneous deductions on my 2024 tax return?

Generally, no. However, if you have unreimbursed employee expenses that meet specific qualifications, you might be able to claim them. Publication 529 details these qualifications.

Where can I find more information about unreimbursed employee expenses?

Publication 529 offers a detailed explanation of qualified unreimbursed employee expenses. Download the Publication 529 attached below.

What are some examples of deductible employee expenses?

You might be able to deduct ordinary and necessary business expenses your employer doesn't reimburse, such as:

  • Job-related travel expenses (including transportation, meals, and lodging)
  • Uniforms not suitable for everyday wear
  • Home office expenses (if you meet specific requirements)
  • Small tools and supplies not claimed through a reimbursement program.