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IRS.gov Website
Publication 17
taxmap/pub17/p17-146.htm#en_us_publink1000174068

Chapter 27
Other Itemized Deductions(p192)


What's New(p192)

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EIC
At the time this publication went to print, Congress was considering legislation that would do the following.
  1. Provide additional tax relief for those affected by certain 2018 disasters.
  2. Extend certain tax benefits that expired at the end of 2017 and that currently can't be claimed on your 2018 tax return.
  3. Change certain other tax provisions.
To learn whether this legislation was enacted resulting in changes that affect your 2018 tax return, go to Recent Developments at IRS.gov/Pub17.
taxmap/pub17/p17-146.htm#en_us_publink10008794
No miscellaneous itemized deductions allowed.(p192)
You can no longer claim any miscellaneous itemized deductions. Miscellaneous itemized deductions are those deductions that would have been subject to the 2% of adjusted gross income limitation. See Miscellaneous Itemized Deductions, later.
taxmap/pub17/p17-146.htm#en_us_publink10008796
Fines and penalties.(p192)
Rules regarding deducting fines and penalties have changed. See Fines and Penalties, later.
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Standard mileage rate.(p192)
The 2018 rate for business use of a vehicle is 54.5 cents a mile.
taxmap/pub17/p17-146.htm#en_us_publink1000272434
This chapter explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2% of adjusted gross income limitation. You can still claim certain expenses as itemized deductions on Schedule A (Form 1040 or Form 1040NR) or as an adjustment to income on Form 1040. This publication covers the following topics.
Where Refund
You must keep records to verify your deductions. You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. For more information on recordkeeping, see What Records Should I Keep? in chapter 1.

taxmap/pub17/p17-146.htm#TXMP7374b65a

Useful items

You may want to see:


Publication
 463  Travel, Gift, and Car Expenses
 525  Taxable and Nontaxable Income
 529  Miscellaneous Deductions
 535  Business Expenses
 587  Business Use of Your Home (Including Use by Daycare Providers)
 946  How To Depreciate Property
Form (and Instructions)
 Schedule A (Form 1040): Itemized Deductions
 2106 : Employee Business Expenses
For these and other useful items, go to IRS.gov/Forms.
taxmap/pub17/p17-146.htm#en_us_publink1000174073

Miscellaneous Itemized Deductions(p192)

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You can no longer claim any miscellaneous itemized deductions that are subject to the 2% of adjusted gross income limitation, including unreimbursed employee expenses. However, you may be able to deduct certain unreimbursed employee business expenses if you fall into one of the following categories of employment listed under Unreimbursed Employee Expenses, next.
taxmap/pub17/p17-146.htm#en_us_publink1000174074

Unreimbursed Employee Expenses(p192)

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You can no longer claim a deduction for unreimbursed employee expenses unless you fall into one of the following categories of employment.
taxmap/pub17/p17-146.htm#en_us_publink100015808

Categories of Employment(p192)

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You can deduct unreimbursed employee expenses only if you qualify as an Armed Forces reservist, qualified performing artist, fee-basis state or local government official, and employee with impairment-related work expenses.
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Armed Forces reservist (member of a reserve component). (p192)
You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; or the Reserve Corps of the Public Health Service.
taxmap/pub17/p17-146.htm#en_us_publink10008800
Qualified performing artist. (p192)
You are a qualified performing artist if you:
  1. Performed services in the performing arts as an employee for at least two employers during the tax year,
  2. Received from at least two of the employers' wages of $200 or more per employer,
  3. Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts, and
  4. Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist.
taxmap/pub17/p17-146.htm#en_us_publink10008801
Fee-basis state or local government official. (p192)
You are a qualifying fee-basis official if you are employed by a state or political subdivision of a state and are compensated, in whole or in part, on a fee basis.
taxmap/pub17/p17-146.htm#en_us_publink10008802
Employee with impairment-related work expenses. (p192)
Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. They also include other expenses in connection with the place of employment that enable the employee to work. See Pub. 463 for more details.
taxmap/pub17/p17-146.htm#en_us_publink10008804

Allowable unreimbursed employee expenses. (p192)

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If you qualify as an employee in one of the categories mentioned above, you may be able to deduct the following items as unreimbursed employee expenses.
Unreimbursed employee expenses for individuals in these categories of employment are deducted as adjustments to gross income. Qualified employees listed in one of the categories above must complete Form 2106 to take the deduction.
You can deduct only unreimbursed employee expenses that are:
An expense is ordinary if it's common and accepted in your trade, business, or profession. An expense is necessary if it's appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.
taxmap/pub17/p17-146.htm#en_us_publink100015810

Educator Expenses(p192)

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If you were an eligible educator in 2018, you can deduct up to $250 of qualified expenses you paid in 2018 as an adjustment to gross income on Schedule 1 (Form 1040), line 23, rather than as a miscellaneous itemized deduction. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses. For additional information, see Educator Expenses in Pub. 529.
taxmap/pub17/p17-146.htm#en_us_publink1000174105

Expenses You Can’t Deduct(p192)

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Because of the suspension of miscellaneous itemized deductions, there are two categories of expenses you can't deduct: miscellaneous itemized deductions subject to the 2% AGI limitation, and those expenses that are traditionally nondeductible under the Internal Revenue Code. Both categories of deduction are discussed next.
taxmap/pub17/p17-146.htm#en_us_publink10008808

Miscellaneous Deductions Subject to 2% AGI(p193)

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Unless you fall into one of the qualified categories of employment under Unreimbursed Employee Expenses, earlier, miscellaneous itemized deductions that are subject to the 2% of adjusted gross income limitation can no longer be claimed. For expenses not related to unreimbursed employee expenses, you generally can't deduct the following expenses, even if you fall into one of the qualified categories of employment listed earlier.
taxmap/pub17/p17-146.htm#en_us_publink1000174107

Appraisal Fees(p193)

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Appraisal fees you pay to figure a casualty loss or the fair market value of donated property are miscellaneous itemized deductions and can no longer be deducted.
taxmap/pub17/p17-146.htm#en_us_publink1000174108

Casualty and Theft Losses(p193)

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Damaged or stolen property used in performing services as an employee is a miscellaneous deduction and can no longer be deducted. For other casualty and theft losses, see chapter 26.
taxmap/pub17/p17-146.htm#en_us_publink1000174110

Clerical Help and Office Rent(p193)

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Office expenses, such as rent and clerical help, you pay in connection with your investments and collecting taxable income on those investments are miscellaneous itemized deductions and are no longer deductible.
taxmap/pub17/p17-146.htm#en_us_publink1000234768

Credit or Debit Card Convenience Fees(p193)

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The convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card is a miscellaneous itemized deduction and is no longer deductible.
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Depreciation on Home Computer(p193)

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If you use your home computer to produce income (for example, to manage your investments that produce taxable income), the depreciation of the computer for that part of the usage of the computer is a miscellaneous itemized deduction and is no longer deductible.
taxmap/pub17/p17-146.htm#en_us_publink1000174112

Excess Deductions of an Estate(p193)

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An excess deduction resulting from an estate's total deductions being greater than its gross income, in the previous tax year, is a miscellaneous itemized deduction and beneficiaries can no longer deduct it.
taxmap/pub17/p17-146.htm#en_us_publink1000174113

Fees To Collect Interest and Dividends(p193)

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Fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock are miscellaneous itemized deductions and can no longer be deducted.
taxmap/pub17/p17-146.htm#en_us_publink1000174114

Hobby Expenses(p193)

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A hobby isn't a business because it isn't carried on to make a profit. Hobby expenses are miscellaneous itemized deductions and can no longer be deducted. See Not-for-Profit Activities in chapter 1 of Pub. 535.
taxmap/pub17/p17-146.htm#en_us_publink1000174116

Indirect Deductions of Pass-Through Entities(p193)

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Pass-through entities include partnerships, S corporations, and mutual funds that aren't publicly offered. Deductions of pass-through entities are passed through to the partners or shareholders. The partners or shareholders share of passed-through deductions for investment expenses are miscellaneous itemized deductions and can no longer be deducted.
taxmap/pub17/p17-146.htm#en_us_publink1000174121
Nonpublicly offered mutual funds.(p193)
These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. The investment expenses reported on Form 1099-DIV are a miscellaneous itemized deduction and are no longer deductible.
taxmap/pub17/p17-146.htm#en_us_publink1000174122

Investment Fees and Expenses(p193)

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Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.
taxmap/pub17/p17-146.htm#en_us_publink1000174123

Legal Expenses(p193)

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You usually can deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax.
Legal expenses that you incur in attempting to produce or collect taxable income, or that you pay in connection with the determination, collection, or refund of any tax are miscellaneous itemized deductions and are no longer deductible.
You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Expenses for resolving nonbusiness tax issues are miscellaneous itemized deductions and are no longer deductible.
taxmap/pub17/p17-146.htm#en_us_publink1000174125

Loss on Deposits(p193)

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For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 26.
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Repayments of Income(p193)

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Generally, repayments of amounts that you included in income in an earlier year is a miscellaneous itemized deduction and can no longer be deducted. If you had to repay more than $3,000 that you included in your income in an earlier year, you may be able to deduct the amount. See Repayments Under Claim of Right, later.
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Repayments of Social Security Benefits(p193)

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For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11.
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Safe Deposit Box Rent(p193)

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Rent you pay for a safety deposit box you use to store taxable income-producing stocks, bonds, or investment related papers is a miscellaneous itemized deduction and can no longer be deducted. You can't deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities.
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Service Charges on Dividend Reinvestment Plans(p193)

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Service charges you pay as a subscriber in a dividend reinvestment plan are a miscellaneous itemized deduction and can no longer be deducted. These service charges include payments for:
taxmap/pub17/p17-146.htm#en_us_publink10008752

Tax Preparation Fees(p193)

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Tax preparation fees on the return for the year in which you pay them are a miscellaneous itemized deduction and can no longer be deducted. These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return.
taxmap/pub17/p17-146.htm#en_us_publink1000174133

Trustee's Administrative Fees for IRA(p193)

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Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are a miscellaneous itemized deduction and can no longer be deducted. For more information about IRAs, see chapter 17.