Certain employee expenses, expenses of producing income, and a variety
of other expenses are deductible as miscellaneous itemized deductions on
Schedule A of Form 1040. Most
miscellaneous deductions are subject to the 2% limit, which means you can
deduct the amount left after you subtract 2% of your adjusted gross income
from the 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] or [2106EZ],
- 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.
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 or personal car.
If you want to read more about educational expenses, select Topic
513. For further information on employee business expenses, select
Topics 511 and 512.
For additional information, see Publication
529, Miscellaneous Deductions or Publication
946, How to Depreciate Property. Publications can be downloaded
from this site, or ordered by calling 1-800-829-3676.
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