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 Form 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:

1. Commuting expenses going to and from work,
2. Fines and penalties you pay for violating a law,
3. Burial or funeral expenses; and
4. Losses from the sale of your home or personal car.

For more information on miscellaneous deductions subject to the 2% limit, refer to Publication 17, Your Federal Income Tax, Chapter 30. Publication 529, Miscellaneous Deductions, and the interactive Tax Trails may also be helpful.

For additional information see Publication 946, How to Depreciate Property or Topic 513 for educational expenses and Topic 511 and Topic 512 for employee business expenses. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.

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