Miscellaneous Tax Deductions

Itemizing miscellaneous tax deductions is a key tax saving technique -however having a good understanding of deductible expenses is a must.

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What are miscellaneous tax deductions?

Miscellaneous tax deductions are deductible expenses that don't fall into any other deduction category.

Miscellaneous tax deductions can be defined are expenses incurred for the production of income.

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What counts as miscellaneous tax deductions?

There are two categories of miscellaneous tax deductions: those subjected to a 2% limitation and ones that are not. These tax deductions carrying a 2% limitation include:

  • legal fees
  • appraisal fees
  • investment expenses
  • tax preparation fees
  • cost of education that improves/maintains job skills
  • cost of safe deposit box storing bonds
  • job-seeking expenses
  • un-reimbursed work-related expenses.

Miscellaneous tax deductions not subject to the 2% reduction include:

  • gambling losses
  • expenses for handicapped individuals
  • federal estate tax
  • bond premiums
  • cessation of annuity
  • and unrecovered cost from a decedent's pension.

Related IRS publications

Get more information about miscellaneous tax deductions from IRS Publication 529

For a paper return, you also need to complete Schedule A. Of course, if you e-file, this is automatically taken care of for you.

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)