Miscellaneous deductions can cut taxes. These may include certain expenses you paid for in your work if you are an employee. You must itemize deductions when you file to claim these costs. So if you usually claim the standard deduction, think about itemizing instead. You might pay less tax if you itemize. Here are some tax tips you should know that may help you reduce your taxes:
Deductions Subject to the Limit.
You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:
Deductions Not Subject to the Limit.
Some deductions are not subject to the two percent limit. They include:
There are many expenses that you can’t deduct. For example, you can’t deduct personal living or family expenses. You claim allowable miscellaneous deductions on Schedule A, Itemized Deductions. For more about this topic call one of our professionals.
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