Deduction of Miscellaneous Expenses


The tax overhaul also suspended many other deductions or imposed new limits on them while targeting major write-offs such as mortgage interest and state and local taxes. These changes usually expire in late 2025. On , a grab bag of items, Congress eliminated deductions for miscellaneous expenses. The change removed deductions for unreimbursed travel, meal and entertainment expenses for ; union dues; uniforms; subscriptions; fees for safe deposit boxes; and fees for tax preparation; among others.

The deduction for investment-consulting fees is also gone. This change affects investors who pay advice fees based on a percentage of their assets, including many with separately managed accounts that are tax-efficient. It also hits investors in hedge funds or other partnership-structured funds if they owe tax on profits before deducting heavy fees.

Many taxpayers found the deduction of miscellaneous expenses difficult to qualify for, as total had to exceed 2 percent of adjusted gross income. For most casualties and theft losses other than from federally declared disasters, lawmakers also curtailed the deduction on Schedule A.

Some other itemized deductions, such as certain gambling losses, are still permitted. They are listed in the return instructions for Schedule A. Congress ended the deduction by taxpayers who are not in the military for moving expenses. However, even if they don’t itemize, educators can still deduct up to $250 in personal expenses for classroom supplies.