Taxpayers often forget or don't realize that there are a number of miscellaneous items that they
can deduct on their schedule A such as tax preparation fees, job expenses, investment fees, job
education costs etc. The total of these deductions must be greater than 2% of your adjusted gross income, but added together they just may hit the mark and save you a few extra dollars. The following is a list from
IRS pub 529 of common unreimbursed employee expenses. Keep in mind that these expenses must be paid or incurred during your tax year, for carrying on your trade or business of being an employee, and ordinary and necessary.
Business bad debt of an employee
Business liability insurance premiums.
Damages paid to a former employer for breach of an employment contract.
Depreciation on a computer your employer requires you to use in your work.
Dues to a chamber of commerce if membership helps you do your job.
Dues to professional societies.
Home office or part of your home used regularly and exclusively in your work.
Job search expenses in your present occupation.
Laboratory breakage fees.
Legal fees related to your job.
Licenses and regulatory fees.
Malpractice insurance premiums.
Medical examinations required by an employer.
Passport for a business trip.
Repayment of an income aid payment received under an employer's plan.
Research expenses of a college professor.
Rural mail carriers' vehicle expenses.
Subscriptions to professional journals and trade mag-azines related to your work.
Tools and supplies used in your work.
Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.
Union dues and expenses.
The education credits, including the American Opportunity Credit, were extended through 2012 for expenses
paid for tuition, certain fees and course materials for higher education. The maximum credit available is $2,500 in 2012 which includes 100% of qualifying tuition and related expenses not in excess of $2,000, plus 25% of those expenses that do not exceed $4,000. Additionally, the Lifetime Learning Credit sticks around for 2012, capped at $2,000, which applies to 20% of the first $10,000 of qualifying out-of-pocket expenses The above-the-line Tuition and fee deduction was also extended so that taxpayers who don’t itemize can continue to benefit. So don't overlook these credits as they can mean big savings on your return and they may be gone soon.
Chris has been working in the industry for over a decade and has a passion for ensuring her clients have the best service in the area of taxation, accounting and bookkeeping.