When you itemize deductions, it’s easy to remember the big three — mortgage interest, state and local taxes, and charitable contributions. You might also be able to deduct medical expenses, but only when they exceed 7.5% of your adjusted gross income (AGI). And if you’re unlucky enough to have casualty or theft losses, you can deduct those too.
But don’t stop there. If you look carefully, you might find some miscellaneous deductions to claim. There’s one group of expenses you can deduct to the extent they exceed 2% of AGI. These include the following:
- Unreimbursed business or work expenses — items such as union or professional dues, licenses, subscriptions to trade magazines, and small tools or equipment required for your work. Don’t overlook unreimbursed expenses for job travel or education.
- Tax preparation fees, accounting fees, and costs of renting a safe deposit box.
- Legal or other fees to manage or collect taxable income.
You can deduct a second group without any limit, including:
-
Gambling l
osses, but only to the extent of reported gambling winnings.
- Impairment-related work expenses. These are expenses necessary to allow you to work if you’re disabled, including attendants or special equipment.
Any of these expenses can help boost your itemized deductions, so it’s worth digging around. Please contact us if you have any questions about what might be deductible.
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