Instead of claiming the standard deduction this year on your taxes, you may be eligible for certain miscellaneous deductions. Itemizing your expenses and recording miscellaneous deductions are an often overlooked claim that will help you save money.
If your expenses qualify for the” miscellaneous deduction” it can decrease your taxable income which in turn can decrease you tax payments for the year. Listed below are the qualifications for claiming these expenses. Take a look to see where you can apply some of your expenses and save some money!
If you have expenses larger than 2% of your adjusted gross income they may be deductible if the expense incurred because one of the following scenarios:
- You have incurred expenses for your job that you were not reimbursed for
- Expenses from searching for a new job in the same profession
- Certain work clothes and uniforms, work tools,
- Union dues
- Work-related travel and transportation that were not reimbursed by your employer.
- Any fees you paid for tax preparation.
- Expenses that you pay to:
- Produce or collect taxable income,
- Manage, conserve, or maintain property held to produce taxable income, or
- Determine, contest, pay or claim a refund of any tax.
- In addition keep an eye out for:
- Certain investment fees and expenses
- Some legal fees
- Safe deposit box rental fees (on the condition that it is not used to store jewelry and other personal items)
These above deductions must be larger than 2% of your adjusted gross income to be deducted on your return, but added together they may be. It is worth checking them out.
There are a few miscellaneous expenses that you can use as deductions even if they are below the 2% limit. These expenses can be applied to your tax return regardless of then being more or less than the 2% constraint. The following expenses fall in this category:
- Losses from income producing property. Damage or theft of stocks, bonds, gold, silver, vacant lots, and works of art are expenses that are deductable.
- Losses incurred from gambling losses up to the amount of gambling winnings.
- Impairment-related work expenses of persons with disabilities.
- Losses from Ponzi-type investment schemes.
Review your expenses and see if any of these apply to your situation.