Certain employee expenses, expenses of producing income, and a variety of other
expenses are deductible as miscellaneous itemized deductions on Form 1040, Schedule A.
Most miscellaneous deductions are subject to the 2% limit. This means you can deduct the
amount left after you subtract 2% of your adjusted gross income from their total. Some of
the miscellaneous expenses which may be deductible and subject to the 2% limit are:
Dues paid to professional societies,
Employment-related educational expenses,
Expenses of looking for a new job,
Professional books and magazines,
Union dues and fees,
Business-related travel, transportation, meal and entertainment expenses sometimes
claimed on Form 2106, Employee Business Expenses or 2106-EZ,
Unreimbbursed Employee Business Expenses
Work clothes and uniforms,
Legal fees to collect taxable income, such as alimony,
Fees for renting a safe deposit box to store investment- related material and
Fees for having a tax return prepared.
If you purchased a computer or a cellular phone, you can claim a depreciation deduction
if you use these items in your work as an employee, and it is for the convenience of your
employer and required as a condition of your employment. Depreciation is figured on Form
4562, Depreciation and Amortization. This deduction also will be subject to the 2%
limitation. Refer to Publication 946, How to Depreciate Property.
Substantiated gambling losses are deductible in the year incurred, but the losses you
deduct cannot be more than the gambling winnings you report as income. This deduction is
not subject to the 2% limitation.
Some miscellaneous items that you cannot deduct are:
Commuting expenses going to and from work,
Fines and penalties you pay for violating a law,
Burial or funeral expenses, and
Losses from the sale of your home.
If you want to hear more about educational expenses, select Topic 513. For further
information on employee business expenses, refer to Topics 511 and 512. For additional
information, order Publication 529, Miscellaneous Deductions.
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