IRS List of Tax Deductible Expenses: Itemized Miscellaneous Deductions

Here is a list of miscellaneous deductions often overlooked during tax preparation which can save individuals money.

Employee Expenses

Unreimbursed employee expenses can be deducted for amounts paid or incurred during the tax year which are related to the position as an employee and which are ordinary and necessary.  Per the IRS, “an expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary”.  Examples of unreimbursed employee expenses that may be deducted are as follows:

Business bad debt of an employee Medical examinations required by an employer
Business liability insurance premiums Occupational taxes
Damages paid to a former employer for breach of an employment contract Passport for a business trip
Depreciation on a computer your employer requires you to use in your work Repayment of an income aid payment received under an employer’s plan
Dues to a chamber of commerce if membership helps you do your job Research expenses of a college professor
Dues to professional societies Rural mail carriers’ vehicle expenses
Educator expenses Subscriptions to professional journals and trade magazines related to   your work
Home office or part of your home used regularly and exclusively in your   work Tools and supplies used in your work
Job search expenses in your present occupation Travel, transportation, meals, entertainment, gifts, and local lodging   related to your work
Laboratory breakage fees Union dues and expenses
Legal fees related to your job Work clothes and uniforms if required and not suitable for everyday use
Licenses and regulatory fees Work-related education
Malpractice insurance premiums

Note that many of the aforementioned expenses are only deductible once they exceed 2% of adjusted gross income (AGI) on a tax return.

Tax Preparation Fees

Amounts paid for the preparation of tax returns are tax-deductible.  In addition, convenience fees charged for paying taxes by credit or debit cards are deductible as well.

Casualty and Theft Losses

Amounts paid as a result of a casualty or theft may be deductible.  Examples include storm damage, fire, burglary, etc.  Special rules apply to claiming casualty and theft losses.

Gambling Losses

Gambling losses can only be claimed up to the amount of gambling winnings reported.

Simply Taxes, LLC is a local year-round tax preparation firm with an office located in North Raleigh.  Our Raleigh accountants are ready to assist you with your questions pertaining to your taxes!

Related Articles:

What’s New for 2012 Tax Returns (Due in April 2013)?

What Medical Expenses Can Be Deducted On Tax Returns: Tax Deductible Medical Expenses

Standard Deductions vs. Itemized Deductions:  Which Deduction is Better for Tax Returns?

Storm Damage Tax Deductions


IRS Publication 529, Miscellaneous Deductions

IRS Schedule A, Itemized Deductions Instructions

The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers. 

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