The recent tax reform added new tax code Section 67(g), which states, “No miscellaneous itemized deduction shall be allowed for any taxable year beginning after December 31, 2017, and before January 1, 2026.”
Holy moly! Miscellaneous deductions include tax preparation cost, hobby expenses, investment fees, IRA fees, legal fees, unreimbursed job expenses (such as mileage), work-related education expenses and more! To some people, this will be a really big deal.
Is it possible that ways still exist to claim these deductions?
Maybe. There are situations where you can use these expenses in other ways such as business expenses (Sch C). Even if you get paid with a W-2, there are certain circumstances that make it possible for a taxpayer to claim independent contractor status, in which case these types of deductions may be used as expenses.
If you usually itemize these types of expenses, come see us and let us help you examine ways not to be hurt by these new changes. We don’t charge anything to review your tax situation with you, so come in for free today and sit with Ken or Christopher!