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What is IRS Publication 529 on Miscellaneous Deductions?

IRS Link to Publication — Found Here

Publication 529 describes the possible deductions which can be taken in an itemized way on an individual’s tax return.

Miscellaneous deductions can be filed using Schedule A of Form 1040. Someone should only take the time to fill out this form if they believe their total deductions will exceed the standard deduction amount, which is nearly $13,000 for a married couple filing jointly.

Some of the eligible deductions are subject to a 2% limit which reduces the amount of possible deductions for these items by 2% of the individual’s gross income, and only the portion of total deductions for this category which are in excess of the 2% limit can be taken as deductions.

A common deduction which fits into this category is unreimbursed employee expenses, which is filed with a Form 2106. Some deductions can be taken without regard for the 2% limit. Examples of these include gambling losses, premium on taxable bonds, casualty losses on rental property, and more.

Some eligible deductions might surprise you, so it’s good to have a look through Publication 529 to see what you might not be taking advantage of already.

Keywords: Form 1040, 2% limit on deductions, unreimbursed expenses, Schedule A, Form 2106,