Highbaugh Tax

As you're preparing your return, don't forget that many incidental expenses that you paid throughout the year may be deductible as miscellaneous deductions on Schedule A if you itemize your deductions. Miscellaneous deductions are deductions other than medical expenses, taxes, interest, charitable contributions, and casualty losses. They're divided into two categories:

1) Deductions that are subject to a "2% of your adjusted gross income" limit and
2) Deductions that are not subject to the 2% of adjusted gross income limit.

Use this checklist to make sure that you've considered every possible deduction to which you're entitled.

Deductions subject to the 2% adjusted gross income limit

You can further categorize deductions subject to the 2% limit as either 1) Unreimbursed employee expenses or 2) "Other" expenses.

Unreimbursed employee expenses

Reduce the amount of your expenses by any reimbursements you received from your employer.

Books used for your profession
Business liability insurance premiums
Business meals or entertainment costs (usually limited to only 50% of the cost)
Depreciation on a computer or cellular phone that you are required to use in your job
Dues to professional societies
Educational expenses toward maintaining or improve the skills used in your present job or profession
Job dismissal insurance
Job search expenses for jobs within your present occupation
Medical examinations required by an employer
Parking fees related to your work
Politicians' expenses in excess of allowances received from the government
Sabbatical leave expenses incurred by teachers for research and educational course study related to teaching duties
Subscriptions to professional journals and trade magazines related to your work
Supplies used in your work
Temporary teaching assignment expenses
Tolls paid while on business travel
Tools used in your work
Traveling costs while on business
Uniforms or other work clothing if it's required and it's not suitable for street wear
Union dues and expenses

Other expenses

Appraisal fees for a casualty loss or charitable contribution
Books or magazines covering investments or taxes
Depreciation on home computers used for investments
Hobby expenses, which generally can't exceed income you receive from the hobby
Investment fees and expenses
Indirect miscellaneous deductions of pass-through entities such as partnerships and S corporations
Insurance premiums for protecting your investments
IRA custodial or management fees that you pay directly (i.e., not deducted from your IRA account)
Keogh custodial or management fees that you pay directly
Legal fees incurred toward collecting or producing income that is taxable to you
Legal fees for keeping a job
Legal fees for tax advisory services
Losses on money in a bankrupt or insolvent bank or other financial institution
Management expenses for vacant or undeveloped land
Professional management fees or office administrative helpers you paid to persons who assist in managing or maintaining your taxable investments
Research expenses for college professors
Safe deposit box rental, or cost of installing a safe in your home
Service charges or fees charged by dividend reinvestment plans
Tax advice and preparation fees, including fees for electronic filing

Deductions not subject to the 2% limit of your adjusted gross income

Gambling losses up to the amount of your gambling winnings
Job-related expenses for handicapped persons (aides, etc.)
Repayments of income you earned in an earlier year
Casualty and theft losses from income-producing property (such as stock, notes, bonds, gold, silver, vacant lots, art) - determine the amount first using Form 4684, Casualties and Thefts
Unrecovered amounts from an investment in an annuity
Amortization of the premium you paid on a bond from which the interest income is taxable
The amount of federal estate taxes that were paid on any income "in respect of a decedent" that was included in the estate