Miscellaneous itemized deductions are itemized deductions subject to special limitations on how much deduction can be taken.
Examples of miscellaneous itemized deductions include:
- Unreimbursed work-related expenses of employees
- Fees paid for tax preparation
- Fees paid to investment advisors
- Fees paid to a bank for safety deposit boxes
- Union dues
You can only deduct your miscellaneous itemized deductions if the total of those deductions is greater than 2% of your adjusted gross income (AGI). Only the portion above 2% can be deducted.
Your AGI is $50,000. You have $1,500 of miscellaneous deductions. $50,000 x 2% = $1,000. You can deduct $500 on your tax return ($1,500 total expenses minus $1,000).
For more tax terms and definitions, check out the Glossary page on this website.
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