Are you aware of all the write-offs you can take on your tax return? There are miscellaneous tax deductions that can reduce the amount of money you owe to the IRS. The taxes could include different expenses you paid for work if you have unreimbursed expenses as an employee. It’s essential to itemize deductions when you are filing to claim these costs. If you normally use the standard deduction, you might think about itemizing instead. You may pay less if you choose to itemize your deductions. Here are some tips that could help you reduce your taxes:
Some deductions are subject to the 2% limit. You can deduct miscellaneous costs only if their total is more than 2% of your adjusted gross income (AGI). These include the following expenses:
- Unreimbursed work expenses
- Amounts spent in a job search for new employment at the same type of job as your old one
- Some employee clothes and job uniforms
- Work-related tools
- Dues for your union
- Job travel and transportation costs
- The price paid to prepare your taxes including the price paid for tax prep software and fees paid out-of-pocket for e-filing your return
Deductions not subject to the 2% limit include:
- Particular casualty and theft losses. Usually, this is applied to damaged or stolen property you held for investment. Can include property such as stocks, bonds and artwork.
- Losses in gambling up to the total amount of your winnings in gambling.
- Losses occurring from a Ponzi-type investment plan (scheme).
There are several expenses that you are not able to deduct, such as personal or family expenses. You can claim allowable miscellaneous tax write-offs on Schedule A, Itemized Deductions. For more information on this topic see Publication 529, Miscellaneous Deductions.
If you have questions regarding how this information may apply to you, contact your tax preparer for more information.
