The Benefits of Miscellaneous Deductions.
Whether you are a first year tax return filer or have been paying US Income taxes for years you should always remember to ask your accountant whether or not he itemized your expenses last year. This is very important and here is why:
If you are in a position to itemize your deductions on schedule A of your tax return in lieu of claiming the standard deduction, then you may be able to take advantage of claiming certain miscellaneous deductions. These deductions reduce the amount of your taxable income and reduce the amount of taxes you may have to pay.
Here are some things you should know about miscellaneous tax deductions for US income tax purposes:
Deductions Not Subject to the 2 Percent Limit.
- Casualty or theft losses from income producing property; for example, theft of stocks, bonds, gold, works of art, vacant land, etc.
- Gambling losses to the extent of gambling winnings.
- Work expenses of persons with disabilities, if they are impairment-related.
- Losses from Ponzi-type investment schemes.
Deductions Subject to the 2 Percent Limit.
In United States as a resident one is able to deduct the amount of certain miscellaneous expenses that exceed 2 percent of your AGI. Deductions that are subject to the 2 percent limit include:
- Unreimbursed employee expenses such as certain uniforms and work clothes, tools, union dues and subscriptions, expenses related to searching for a new job in the same profession, and work related travel and transportation.
- Tax preparation fees; you can deduct the fees that Your Los Angeles or US accountants charge you for the preparation of your tax returns.
- Other expenses that are deductible are:
Legal fees that produce or help collect taxable income,
Expenses that Manage, maintain and conserve property that is held to produce taxable income,
Fees associated with and that help you determine, pay or claim a refund of any tax.
Some additional expenses include certain investment fees and expenses, some legal fees, some hobby expenses that cannot exceed your hobby income and safe deposit box fees.
If you are able to deduct qualified miscellaneous deductions, you report them on Schedule A; under Itemized Deductions of your US Tax return.
We at Velin & Associates, Inc. recommend that you keep good records of your miscellaneous deductions to make it easier for you and your tax preparer to prepare an accurate tax return.
There are many miscellaneous expenses that are not deductible so please always consult your accountant. If you are not happy with your accountant or don’t have one, GIVE US A CALL! Here at Velin & Associates, Inc., we value each and every client and we are always glad to be of service to our new clients. We will assist you in taking advantage of the all deduction available to you.
If you have any questions about anything mentioned above feel free to contact us through our website @ Losangelescpa.org or Call us at 424-274-1391.
Thank you for reading….