Miscellaneous Itemized Deductions are Gone for 2018!

February 6, 2019 Posted by: Category: Blog No comments

With the new tax law, miscellaneous Itemized deductions are now eliminated.

What does that mean for your tax deductions?

If you are a wage earner you used to be able to deduct work-related expenses not reimbursed by your employer such as:

  • Mileage
  • Office in the home
  • Office expenses
  • All expenses normally are taken on form 2106 unless you are a fee-based government employee, impairment-related expenses, armed forces reservist or performing artist.
  • Section 162(H) deduction for State Representative living outside the 50 mile limit of the state house, unless they are paid on a fee base. (Mass representatives are not fee-based)

Tax strategy: You should discuss this loss of deductions with your employer to see if these expenses can be reimbursed by your employer. They can still take these items as business deductions while you cannot.

  • In addition, the following items are no longer deductible:
  • Investment expenses including broker fees
  • Legal Fees
  • Professionals publications
  • Tax preparation fees
  • Union Dues
  • Safe deposit box

NOTE: although gambling losses are in the miscellaneous itemized deduction schedule these losses can still be taken but only to the extent of winnings.

This post is part of our FAQ page. You can check out other Frequently Asked Questions here: https://smarttaxadvisor.com/faq/

About 

Paul Dion - Speaker, Author, and Tax Advisor - has been planning and preparing returns for business owners for over 25 years with a specialty in helping real estate agents and investors. His passion is to help business owners legally pay the least amount of tax using court-tested and IRS-approved tax strategies. In addition, he continues to advance service offerings to include income saving strategies designed to deliver higher profits to your business.