Tax Preparation Help  
Pub. 529, Miscellaneous Deductions 2006 Tax Year

Publication 529 - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Limit on itemized deductions. For 2006, if your adjusted gross income is more than $150,500 ($75,250 if you are married filing separately), you may have to reduce the amount of certain itemized deductions, including most miscellaneous deductions. However, the amount by which these deductions are reduced in 2006, is only 2/ of the amount that would otherwise have applied. For more information and a worksheet, see the instructions for Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR),
line 17.

Meals and entertainment. The percentage of meals and entertainment expenses you can deduct has increased. See Meals and entertainment on page 7.

Standard mileage rate. The 2006 standard mileage rate for business use of a vehicle is 44½ cents per mile. See Travel and transportation expenses on page 6 for more information.

Educator expenses. The deduction for educator expenses as an adjustment to income expired at the end of 2005. See Educator Expenses under Deductions Subject to the 2% Limit, later.

caution
At the time this publication went to print, Congress was considering legislation that would extend the deduction for educator expenses as an adjustment to income. To find out if this legislation was enacted, and for more details, go to www.irs.gov, and click on More Forms and Publications, and then on What's Hot in forms and publications, or see Publication 553, Highlights of 2006 Tax Changes.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

This publication explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. This publication covers the following topics.

  • Deductions subject to the 2% limit.

  • Deductions not subject to the 2% limit.

  • Expenses you cannot deduct.

  • How to report your deductions.

Generally, nonresident aliens are allowed miscellaneous itemized deductions to the extent they are directly related to effectively connected income.

Records you should keep
You must keep records to verify your deductions. You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. For more information on recordkeeping, see Publication 552, Recordkeeping for Individuals.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

  You can write to us at the following address:


Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  You can email us at *taxforms@irs.gov. (The asterisk must be included in the address.) Please put “Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Ordering forms and publications.   Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 business days after your request is received.


National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903

Tax questions.   If you have a tax question, visit www.irs.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.

Publication

  • 463 Travel, Entertainment, Gift, and Car Expenses

  • 525 Taxable and Nontaxable Income

  • 535 Business Expenses

  • 587 Business Use of Your Home (Including Use by Daycare Providers)

  • 946 How To Depreciate Property

Form (and Instructions)

  • 2106
    Employee Business Expenses

  • 2106-EZ
    Unreimbursed Employee Business Expenses

See How To Get Tax Help near the end of this publication for information about getting these publications and forms.

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