Certain miscellaneous expenses, like consultation fees for tax services that you incur throughout the year, may be able to be deducted at tax time. If you chose to itemize your expenses, you may even be able to lower the amount of taxes you owe.
If you want to claim miscellaneous deductions on your tax form, you should know the following things:
Two Percent Limit:
The amount you can deduct in most miscellaneous expenses has to be greater than two percent of your adjusted gross income. Included in this rule are:
- employee expenses that haven’t been reimbursed
- costs incurred through a job search for the same occupation
- the cost of purchasing tools or uniforms for your job
- union dues
- business travel.
Exclusions to the Two Percent Limit:
Certain deductions aren’t required to meet the two percent limit. Examples of these deductions are:
- loss incurred on investment properties, including stocks, bonds, and art pieces
- any gambling losses equal to the amount you’ve won
Some expenses aren’t deductible, regardless of your AGI. You can’t deduct any costs associated with personal amenities or family living expenses. Any expenses you wish to deduct should be filed with your regular tax return using Schedule A, Itemized Deductions.
