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Halverson & Company

Farewell, Miscellaneous Itemized Deductions


Prior to the new Tax and Jobs Act law, individuals who itemized their deductions on Schedule A could deduct certain miscellaneous itemized deductions to the extent that the aggregate of those deductions exceeded 2% of adjusted gross income.

Below includes a list of miscellaneous itemized deductions which will be completely eliminated for tax years 2018 through 2025 are:

  • Unreimbursed employee business expenses (travel, mileage, home office deduction, tools, supplies, professional uniforms, dues & subscriptions, job search expenses, etc.)

  • Investment expenses and expenses for the production or collection of income (investment counsel or advisory fees, safe deposit rental, investment reference materials, etc.)

  • Tax determination expenses (tax preparation fees, long distance phone calls to the IRS, software, etc.)

  • Expenses allowed under the “hobby loss” rules

  • Unreimbursed vehicle expenses of rural mail carriers

  • Deduction for theft and personal casualty losses (although certain casualty losses in federally declared disaster areas may still be claimed)

The elimination of unreimbursed employee expenses only affects taxpayers who claim employee-related deductions on Schedule A. So, if you are a business owner who typically files a Schedule C, all business-related deductions are not affected by the new law.


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