In order to deduct qualifying expenses as miscellaneous itemized deductions, they have to exceed 2% of your adjusted gross income. There are generally three different costs that fall under miscellaneous deductions, and therefore are subject to the 2% limitation: unreimbursed employee expenses, tax preparation costs, and certain other expenses.
There are some unreimbursed employee expenses that can be claimed as a miscellaneous deduction on a Schedule A of a Form 1040, which lists your itemized deductions. In order to qualify for deduction, the expense has to have been acquired during the tax year, and has to be deemed ordinary and necessary to carrying on business as an employee.
In addition to unreimbursed employee expenses, there are other expenses you may be able to deduct that are subject to the 2% AGI limit. These include fees incurred from:
- Producing or collecting taxable income that is included in your gross income
- The maintenance and management of property required for your income to continue
- Paying or claiming a tax refund.
The deduction of expenses first the first two reasons have to be ordinary and directly associated to the purposes of your employment, income-producing skill, or business.