As with medical expenses, you can’t deduct miscellaneous itemized expenses on your tax return if you can’t clear an annual “floor.” But in this case, you don’t have as far to climb: You can deduct miscellaneous expenses that exceed 2% of your AGI. (The medical deduction floor is 7.5% of AGI.)
Strategy: Pore over your records to find expenses that might have fallen through the cracks. While miscellaneous expenses represent a hodgepodge, they generally can be characterized as production-of-income expenses or unreimbursed employee business expenses.
For instance, you can deduct investment fees, custodial fees, trust administration fees and similar expenses for managing investments. An example of an unreimbursed employee expense is a home computer used for business purposes.
Tip: Don’t forget that tax advisory and preparation fees count as miscellaneous expenses. This includes the cost of tax publications such as Small Business Tax Strategies.
- 10 Secrets to an Effective Performance Review
- Small Business Tax Deduction Strategies
- Swing a smart tax deal on business car trade-ins
- Deciding who's exempt? Focus on employee's duties, not job title
- Business writing: 6 tips to keep it clear
- Manager orientations: How to get new leaders up to speed quickly