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.
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.
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Deductions not subject to the 2% limit.
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Expenses you cannot deduct.
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How to report your deductions.
Note.
Generally, nonresident aliens are allowed miscellaneous itemized deductions to the extent they are directly related to effectively
connected
income.
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.
Useful Items - You may want to see:
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
See How To Get Tax Help near the end of this publication for information about getting these publications and forms.
