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Santa Monica tax attorneys Advice to Keep Track of All Your Miscellaneous Deductions

Friday, September 4, 2015

We are the Strategic Tax Lawyers, Santa Monica tax attorneys, who want to give you some facts about how the IRS handles miscellaneous deductions and the importance of keeping track of all documents and forms so that it will not trigger an IRS audit.  In general, miscellaneous deductions will cut down on your tax liability. These deductions can include any of the expenses you may have paid for your career or employee-related expenses such as dry cleaning, transportation, conference or other association fees, etc.  According to the Internal Revenue Service, you need to itemize each deductions when you file your tax forms in order to claim these itemized deductions. According to tax professionals, if you normally will claim the standard tax deduction each year, you should think about itemizing your deductions instead to get a larger tax return. Surprisingly, you might even end up paying less taxes if you itemize your deductions. 


There are other tips that you should consider that could assist with reduce your tax liability. For deductions that are subject to the limit you may be able to deduct most of your miscellaneous items if the total sum equals to or exceeds more than 2% of your AGI (adjusted gross income), which includes certain expenses such as job searching charges if you are unemployed or looking for a new job, unreimbursed employee expenses, clothes and/or uniforms that pertain to your work, work-related tools or machinery, dues to the union, travel related to work, fees you pay for a professional tax preparer, for tax preparation software or for e-filing fees. Some deductions that are not subject to the 2% limit, according to the IRS, are theft, losses or damaged property that was kept for investment purposes. This consists of stocks, bonds, art work, or any other property. It also includes any losses from gambling and any losses from financial investment schemes.  There are a list of many other expenses that cannot be deducted, such as expenses for family or personal living.  Also, you can deduct hobby expenses if it provides you another source of income and doesn’t qualify as your business.  The amount you can legally deduct is the amount of money that you earned from that specific hobby. 

 
The IRS website is a good place to consult first if you have any specific questions. You can report any miscellaneous deductions on Form 1040, Schedule A. This cannot be reported on Forms 1040A or 1040EZ. If these deductions are less than your standard deduction amount, it may not be in your favor to itemize. 


The Strategic Tax Lawyers, LLP are Santa Monica IRS tax attorneys, with years of experience in tax-related and IRS issues.  For a free tax consultation to assist you with your tax-related issues contact the Strategic Tax Lawyers at (800) 669-4775.