Miscellaneous deductions are tax deductions that generally don’t fit into a particular tax category.  They can help reduce taxable income and the amount of taxes owed. 

For example, some employees can deduct certain work expenses like uniforms as miscellaneous deductions.  To do that, they must itemize their deductions instead of taking the standard deduction. 

Here are several tips about miscellaneous deductions:  

Most miscellaneous costs are deductible only if the sum of these items exceeds 2% of the taxpayer’s adjusted gross income (AGI).  For example, before being able to deduct certain expenses, a taxpayer with $50,000 in AGI must come up with more than $1,000 in miscellaneous deductions.  Expenses may include:

• Unreimbursed employee expenses.
• Job search costs for a new job in the same line of work.
• Job tools.
• Union dues.
• Work-related travel and transportation.
• The cost paid to prepare a tax return. 

Some miscellaneous deductions are not subject to the 2% limit. They include:

• Certain casualty and theft losses. In most cases, this rule is for damaged or stolen property held for investment. This may include property such as stocks, bonds and works of art.
• Gambling losses up to the total of gambling winnings.
• Losses from Ponzi-type investment schemes.

To claim allowable miscellaneous deductions, taxpayers must use Schedule A, Itemized Deductions. For more about this topic, see Publication 529, Miscellaneous Deductions.