The Tax Cuts and Jobs Act is changing a lot this year, for better and for worse. One of the bigger changes to 1040 returns is the loss of miscellaneous itemized expenses on Schedule A.

What sort of things are included in miscellaneous itemized expenses? Here are some examples:

  • Tax preparation fees
  • Investment fees
  • Safety deposit box fees
  • Hobby expenses
  • Job search expenses
  • IRA custodian fees
  • Unreimbursed employee business expenses
  • Professional business license fees
  • Subscriptions to journals and publications
  • Union dues
  • Work clothes and uniforms
  • Tools and supplies used in your work

Before 2018, individuals could deduct their miscellaneous itemized expenses on Schedule A (provided the total exceeded 2% of their Adjusted Gross Income). Starting in 2018, these deductions have been eliminated entirely from Schedule A.

It’s still technically possible to claim some of these expenses, but not on Schedule A. Business-owners who file Schedule C can claim the expenses, which offsets their business income and helps reduce their self-employment tax. However, this still leaves non-business owners with unreimbursed business expenses out in the cold.

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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

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