Miscellaneous Itemized Deductions

Miscellaneous Itemized Deductions

For tax years beginning after December 31, 2017 and before January 1, 2026, the allowance for miscellaneous itemized deductions subject to the 2% floor are suspended.

Background: Under old tax law, taxpayers were allowed to deduct certain miscellaneous itemized deductions to the extent they exceeded 2% of the taxpayer’s adjusted gross income.

1- Investment fees (Except investment interest);

2- Tax preparation fees;

3- Unreimbursed employee business expenses.

(a) Tax Planning Tip: Employees may negotiate for reimbursement by employers;

4- Non-business legal fees.

(a) Tax Tip: Study cause of action for business deduction purposes;

(b) Tax Tip: Study cause of action for income exclusion under the IRC 104(a)(2);

5- Dues to professional societies;

6- Educator expenses;

7- Home office or part of your home used regularly and exclusively in your work;

8- Job search exp. in your present occupation;

9- Laboratory breakage fees;

10- Legal fees related to your job;

11- Licenses and regulatory fees;

12- Malpractice insurance premiums;

13- Medical exams required by an employer;

12- Occupational taxes;

13- Passport for a business trip;

14- Business bad debt of an employee;

15- Business liability insurance premiums;

17- Depreciation on a computer your employer requires you to use in your work;

18- Dues to a chamber of commerce if membership helps you do your job;

19- Dues to professional societies; and

20- Educator expenses.

Zaher Fallahi, Tax Attorney, CPA, is a Tax Controversy Attorney, and defends taxpayers in resolving their Income Tax and Offshore Accounts (FBAR and FATCA) problems. Telephones: (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), e-mail taxattorney@zfcpa.com