IRS Publication 529 - Miscellaneous Deductions

A A A

DEFINITION

A document published by the Internal Revenue Service (IRS) detailing miscellaneous expenses that can be reported as itemized deductions on Schedule A of Form 1040 or Form 1040NR. The deduction is calculated by subtracting 2% of the adjusted gross income (AGI) from the total amount of expenses listed, though some items are excluded from this limit, with this subtraction coming after any other deduction limit. Expenses can be claimed if they are considered ordinary and necessary in a particular line of business.



INVESTOPEDIA EXPLAINS

Taxpayers must keep receipts, checks, account statements or other physical records in order to prove expenses. More information about recordkeeping is available in IRS Publication 552 (Recordkeeping for Individuals).


Miscellaneous deductions are often those that are not reimbursed by employers but are still incurred by employees. Some items which may seem ordinary and necessary may actually be considered personal expenses by the IRS, and thus not subject to a tax deduction.




RELATED TERMS
  1. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals use to file ...
  2. Adjusted Gross Income - AGI

    A measure of income used to determine how much of your income is taxable. Adjusted ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the collection and ...
  4. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that is made up ...
  5. Schedule A

    A U.S. income tax form used by taxpayers to report itemized deductions, which ...
  6. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans – such as Direct, ...
  7. Eurasian Economic Union (EEU)

    An economic union created in 2014 by a treaty signed by Russia, Kazakhstan and ...
  8. Proof of Charitable Contributions ...

    Substantiation required by the Internal Revenue Service for a taxpayer to claim ...
  9. Direct Consolidation Loan

    A loan that combines two or more federal education loans into a single loan. ...
  10. Post-9/11 GI Bill

    A United States law that provides benefits to military veterans who have taken ...
comments powered by Disqus
Hot Definitions
  1. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  2. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  3. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  4. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
  5. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
  6. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
Trading Center