Keep Track of Miscellaneous Deductions
When it comes time to prepare your tax return, you may have questions about whether you should itemize your miscellaneous deductions. Doing so can make a real difference in the amount that you owe to the government and can cut your taxes dramatically, so before you make the decision to just take the standard deduction, spend some time thinking about the things that you’ve paid for throughout the course of the year – you may find that there are several that you can deduct. If you’re not sure what type of things can be itemized, here is a list of some of the expenses that qualify:
- Work expenses that your employer didn’t reimburse you for
- Certain work uniforms or work clothes that you had to purchase
- The costs of looking for a new job in the same line of work
- Monies paid for tools that you need to do your job
- Dues that you have to pay to be a member of a union
- The costs of travel and transportation that you were required to pay for work
- Tax preparation costs, including fees you paid in order to send your return via e-filing
In order to deduct any of these expenses, the total that you spent on them must come to more than two percent of your adjusted gross income. There are other expenses that do not have this requirement, including:
- Losses suffered as a result of gambling. These can be taken up to the amount that you won in total.
- Losses suffered when you are a victim of investment schemes known as Ponzi schemes
- Losses due to theft or property damage, particularly when the item that was stolen or damaged was acquired and held for investment purposes. Examples of items that qualify include collectibles, works of art, and stocks and bonds.
Understanding which expenses can be deducted and which cannot can be complicated. Family expenses and living expenses cannot be itemized, while business expenses can be. If you choose to itemize your miscellaneous expenses, they should be listed on Schedule A when you file your taxes.
If you are uncertain as to whether you qualify to itemize or which expenses can be deducted, contact us at (513) 713-1152 for a convenient appointment.