Self-Employed View:

Miscellaneous Deductions

Commonly Overlooked Deductions

Miscellaneous itemized deductions are claimed on Schedule A (Form1040.) If your adjusted gross income is greater than $126,000 ($63,300 if you are married but filing separately), you may have to reduce the amount of certain itemized deductions. Also, many miscellaneous itemized deductions are limited to the amount that is more than 2% of your adjusted gross income. The following list is broken down into two categories "deductions subject to the 2% limit and deductions not subject to the 2% limit" of commonly overlooked deductions related to miscellaneous deductions.

Deductions Subject to the 2% Limit

  • Depreciation on home computers or cellular phones that you use in your work as an employee
  • Dues paid to the Chamber of Commerce or other professional organizations
  • Certain expenses, such as employee agency fees or expenses for typing, printing or mailing resumes, incurred in the process of looking for a job in your current field or occupation
  • Cost for paying for situation-wanted ads
  • Business tools with a useful life of less than one year
  • Subscriptions to professional journals
  • Tax preparation service fees and IRS audits
  • Union dues
  • Safe deposit rentals

Deductions Not Subject to the 2% Limit

  • Gambling losses up to the amount of gambling winnings incurred in the tax year
  • Impairment related to work expenses if you have a physical or mental disability that limits your employment or your major life activities
  • If you had to repay more than $3,000 of income that was included in your income for an earlier year (this is known as a "claim of right.")