Which states allow 2% miscellaneous deductions? (2024)

Which states allow 2% miscellaneous deductions? (1)

HazelE

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‎12-07-201903:44 AM

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Which states allow 2% miscellaneous deductions? (3)

IRonMaN

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‎12-07-201903:44 AM

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Rumor has it, Minnesota allows it. So does South Dakota, Texas, Nevada,Florida, Alaska, Tennessee, Washington, and Wyoming.

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (4)

IRonMaN

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‎12-07-201903:44 AM

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Rumor has it, Minnesota allows it. So does South Dakota, Texas, Nevada,Florida, Alaska, Tennessee, Washington, and Wyoming.

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (5)

Which states allow 2% miscellaneous deductions? (6)Just-Lisa-Now-

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‎12-07-201903:44 AM

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Which states allow 2% miscellaneous deductions? (7) Which states allow 2% miscellaneous deductions? (8) Which states allow 2% miscellaneous deductions? (9)

at first glance I thought, dang, you remember all those?then I noticed what they all have in common!

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Which states allow 2% miscellaneous deductions? (10)

IRonMaN

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‎12-07-201903:44 AM

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Which states allow 2% miscellaneous deductions? (11)

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (12)

rbynaker

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‎12-07-201903:44 AM

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With the caveat that it's not allowed as a deduction in TN if your name is Hall.

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Which states allow 2% miscellaneous deductions? (13)

Which states allow 2% miscellaneous deductions? (14)garman22

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‎12-07-201903:44 AM

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hahaha!! I thought, sheot.....he knows them?? But yeah.....i had to re-read Lisa's statement.

Illinois does not.

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Which states allow 2% miscellaneous deductions? (15)

HazelE

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‎12-07-201903:44 AM

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This was my first time using the community, and I DID research it first, and tried to reach out after not finding anything.But I am disappointed to see that all the answers I've gotten are "smart ass" answers instead of real help.I guess I won't be using this platform again.

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‎12-07-201903:44 AM

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You want boring, stuffy?

This was the first to pop up on google.

Is this boring enough?

https://taxfoundation.org/state-conformity-one-year-after-tcja/

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Which states allow 2% miscellaneous deductions? (18)

rbynaker

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‎12-07-201903:44 AM

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Oh come on.Laugh a little, it's good for your health!It's the middle of tax season and we like to blow off a little steam.It was a very good question, one that certainly I don't know the answer to.So I'm following this thread to see what else I can learn.But I can do that and have a little fun at the same time.

VA & MD follow federal, so you'll get no help in my neck of the woods.I'm finding in several cases it's better to force itemized on federal, pay them a little more tax, and get a much bigger refund from VA/MD.

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Which states allow 2% miscellaneous deductions? (19)

lauriem33

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‎12-07-201903:44 AM

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NY is allowing

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Which states allow 2% miscellaneous deductions? (20)

IRonMaN

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‎12-07-201903:44 AM

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"all the answers I've gotten are "smart ass" answers"

Sorry, but we don't give "dumb ass" answers here ----------------- we just aren't capable of that.Maybe Drake is better suited for those.

But as a side note, if it was the first time you used the community, how come your profile shows you asking 6 questions?
As another side note, who needs to know the list of all lists about which states allow the 2% deduction?If I am never going to do a NY return, why should I care if they allow it.All you really need is to be up to speed with the states you are filing.

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (21)

Which states allow 2% miscellaneous deductions? (22)Just-Lisa-Now-

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‎12-07-201903:44 AM

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I did try to google it, thinking maybe some website out there had compiled a list...but I didn't find anything.

I'd just deal with it on a client by client, state by state basis.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Which states allow 2% miscellaneous deductions? (23)

HazelE

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‎12-07-201903:44 AM

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Let me correct my previous statement: this is the first time I have used this platform and actually received any answers - so it hasn't proven to be at all helpful.I do returns for many different states and was trying to figure out which ones I should watch for this.So thanks for your time and good luck with tax season.

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Which states allow 2% miscellaneous deductions? (24)

sjrcpa

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‎12-07-201903:44 AM

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You got answers to all but 1 of your previous questions.

Ex-AllStar

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Which states allow 2% miscellaneous deductions? (25)

TaxesInMA

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‎12-07-201903:44 AM

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Why clutter up this place with misinformation?

Especially when this joke turns out to be the top answer to a Google search.(And there's no "/s" or other tag to indicate this is a joke.)

Aren't there plenty of other places for humor?

Actual answer, I think: Arkansas, California, Minnesota & New York.

Pennsylvania and some other states decided not to allow the miscellaneous 2% itemized deduction, though misinformation is still out there.

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Which states allow 2% miscellaneous deductions? (26)

IRonMaN

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‎12-07-201903:44 AM

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You think?If you don’t know the actual answer, please don’t clutter this place up with potential misinformation.

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (27)

TaxesInMA

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‎12-07-201903:44 AM

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Troll.

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Which states allow 2% miscellaneous deductions? (28)

abctax55

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‎12-07-201903:44 AM

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Yeah, sure....LOOK at Jeff's credentials before you start name-calling.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

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Which states allow 2% miscellaneous deductions? (29)

TaxesInMA

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‎12-07-201903:44 AM

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It's not about credentials."Jeff" may have personally rewritten the tax code and/or have a direct line to Rettig, that's fine.

Someone had a reasonable straightforward question, originally.He gave a joke answer.I called him on it... and gave an answer that is not perfect (I haven't checked all 50 states) but is better than a joke.And I said "I think" to show that it wasn't necessarily the final answer.

"Jeff" decided to keep trolling.I called him on it, again.

(Definition of troll, per Wikipedia: a person who starts quarrels or upsets people on the Internet to distract and sow discord by posting inflammatory and digressive, extraneous, or off-topic messages in an online community.Wasn't that what he did, the second time?)

Do you think it was unreasonable for the original poster to ask "Which states allow 2% miscellaneous deductions?"Or do you have an accurate and complete answer?Or does Jeff?If not, why keep pestering?

I don't declare myself an expert.I've looked for a good/complete answer to this question and haven't found it.Feel free to help?

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Which states allow 2% miscellaneous deductions? (30)

IRonMaN

Level 15

‎12-07-201903:44 AM

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But my feelings are crushed being called a troll.I might have to find a troll bridge to crawl under to live the rest of my life in shame.

But the moral of story is, a little bit of humor goes a long way during tax season but Intuit doesn’t currently provide us a humor font when needed.

As to the basic question why does someone need a complete list of those states?If you aren’t sure about a state you are working on ask about the state here if you can’t find a set of state instructions on your own.

Slava Ukraini!

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Which states allow 2% miscellaneous deductions? (31)

poolcleaner

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‎12-07-201903:44 AM

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Has anyone noticed that this thread was started and essentially completed 8 months ago at a time when it was relevant to most tax preparers as opposed to now which is 4 weeks after the last returns were due.

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Which states allow 2% miscellaneous deductions? (32)

abctax55

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‎12-07-201903:44 AM

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"Feel free to help?"

I think I'll pass and let you do your OWN research.
Seems to me help was offered via a Google link, and advice to buy some research materials.

"..on your own."
Excellent idea

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

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Which states allow 2% miscellaneous deductions? (33)

Camp1040

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‎12-07-201903:44 AM

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I'm not that smart and I found it! This issue is basic research.
“there are 12 states and Washington, D.C., that will allow you to itemize on your state tax return only if you itemize on your federal,”

Those 12 are Colorado, Georgia, Kansas, Maine, Maryland, Missouri, Nebraska, North Dakota, Oklahoma, South Carolina, Utah and Virginia, he said.

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Which states allow 2% miscellaneous deductions? (34)

Camp1040

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‎12-07-201903:44 AM

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it's a start.....NY is missing.

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Which states allow 2% miscellaneous deductions? (35)

HazelE

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‎12-07-201903:44 AM

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Thank you for this, but it does not answer the original question.The original question [posted 8 months ago] was "which states allow the 2% miscellaneous deductions."I already know which states allow itemized deductions, but most follow the federal "allowed" deductions, therefore NOT the 2% Miscellaneous Deductions.And your response mentions states that allow itemizing only when you itemize on Federal.There are still other states that allow you to itemized even if you do NOT itemized on Federal.CA in particular, allows it even if you take the standard deduction on Federal AND they allow the 2% miscellaneous deductions even if you cannot take them on Federal.I know there are other states that also allow the 2% miscellaneous deductions even if you cannot take them on Federal, but I cannot find which states those are.And believe me, I certainly did "the research" before resorting to posting on this community.

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Which states allow 2% miscellaneous deductions? (36)

Which states allow 2% miscellaneous deductions? (37)taxiowa

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‎12-07-201903:44 AM

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@HazelE I agree Camp1040 did not answer the question asked.And I am not sure TaxesInMA even has the same question.

I don't think any of the responders understand the reasoning behind your question.Do you have alot of 2% misc deductions and are considering a move from your present state to any one state that allows these 2% deductions?Or are you just curious as to which states still allow the 2% deductions?Otherwise as someone mentioned, you could just ask if they are allowed in a particular state you are interested in.Most preparers are aware of their state and maybe a neighbor but not all states.

I can answer for Iowa.Iowa does allow 2% misc deductions.Hope that helps and you are always welcome to move to Iowa to enjoy them.

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Which states allow 2% miscellaneous deductions? (38)

poolcleaner

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‎12-07-201903:44 AM

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Thank you.

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Which states allow 2% miscellaneous deductions? (39)

sjrcpa

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‎12-07-201903:44 AM

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@HazelE "believe me I certainly did "the research" before resorting to posting on this community." If you had researched each state with an individual income tax you would have come up with the answer. So, i don't believe you.

Ex-AllStar

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Which states allow 2% miscellaneous deductions? (40)

Which states allow 2% miscellaneous deductions? (41)Just-Lisa-Now-

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‎12-07-201903:44 AM

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You want us to all call out if our resident state allows it, or you want someone else to go do the research for you?

California allows it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Which states allow 2% miscellaneous deductions? (42)

TaxesInMA

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‎12-07-201903:44 AM

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Thank you.I think Arkansas and Minnesota and New York too.

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Which states allow 2% miscellaneous deductions? (43)

poolcleaner

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‎12-07-201903:44 AM

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Thanks, Lisa.

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Which states allow 2% miscellaneous deductions? (44)

abctax55

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‎12-07-201903:44 AM

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The Tax Book has a great "All States" resource book, either paper or thru their on-line WebLibrary. It's a great research resource for tax professionals.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

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Which states allow 2% miscellaneous deductions? (45)

Ernie

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‎12-07-201903:44 AM

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What state(s) do you deal with?

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Which states allow 2% miscellaneous deductions? (46)

TaxesInMA

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‎12-07-201903:44 AM

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Information is spotty and sometimes incorrect/unhelpful (top answer indicates several states that don't *have* income taxes).

I think Arkansas, California, Minnesota and New York still allow the 2% deduction, at least in part.I'm not sure about others.

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Which states allow 2% miscellaneous deductions? (2024)

FAQs

What is the 2% rule for miscellaneous deductions? ›

In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the aggregate of such deductions exceeds 2 percent of adjusted gross income.

What is the 2% rule on taxes? ›

The 2% rule referred to the limitation on certain miscellaneous itemized deductions, which included things like unreimbursed job expenses, tax prep, investment, advisory fees, and safe deposit box rentals.

What deductions are subject to the 2% limit? ›

Miscellaneous Deductions Subject to the 2% AGI Limit

Appraisal fees for a casualty loss or charitable contribution. Casualty and theft losses from property used in performing services as an employee. Clerical help and office rent in caring for investments. Credit or debit card convenience fees.

What is misc 2 itemized state? ›

Miscellaneous Itemized Deductions Subject to 2% AGI Limit

This generally includes unreimbursed employee business expenses ( ¶941), expenses incurred for the production or collection of income, management of investments, and the preparation of taxes.

When did 2% deductions go away? ›

Specifically, the TCJA suspended for 2018 through 2025 a large group of deductions lumped together in a category called "miscellaneous itemized deductions" that were deductible to the extent they exceeded 2% of a taxpayer's adjusted gross income.

Which of the following is a miscellaneous deduction not subject to the 2% limit? ›

Deductions Not Subject to the 2% Limit

The following miscellaneous tax deductions are not subject to the 2% limit and can still be claimed as itemized deductions: Amortizable premium on taxable bonds. Casualty and theft losses from income-producing property. Federal estate tax on income in respect of a decedent.

What is the 2% itemized deduction? ›

Job-related expenses you can deduct under the 2% rule include: Automobile expenses. Home-office expenses. Unreimbursed travel, entertainment, and gift expenses.

What is the extra standard deduction for seniors over 65? ›

Additional Standard Deduction for People Over 65
Filing StatusTaxpayer Is:Additional Standard Deduction 2024 (Per Person)
Single or Head of HouseholdBlind$1,950
Single or Head of Household65 or older$1,950
Single or Head of HouseholdBlind AND 65 or older$3,900
3 more rows
Mar 11, 2024

What is the $400 tax rule? ›

You must pay SE tax and file Schedule SE (Form 1040) Self-Employment Tax if either of the following applies: Your net earnings from self-employment (excluding church employee income) were $400 or more. You had church employee income of $108.28 or more.

What miscellaneous itemized deductions are not subject to the 2% floor? ›

Miscellaneous Deductions Not Subject to 2% AGI Limit

An estate or trust may also claim certain deductions for administration expenses, personal exemption amount, and any beneficiary distribution in calculating AGI ( ¶528). No other miscellaneous itemized deductions may be claimed in tax years beginning before 2026.

What is the 2 percent deduction? ›

TDS is to be deducted at the rate of 2% on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs.2,50,000.

What are the new limits on itemized deductions? ›

For 2024, as in 2023, 2022, 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.

What tax deductions are no longer allowed? ›

Tax Preparation Fees.

These include the cost of tax preparation software, hiring a tax professional, or buying tax publications. Also gone are deductions for electronic filing fees and fees you pay to fight the IRS, including attorney fees, accounting fees, or fees you pay to contest a ruling or to claim a refund.

Does California allow miscellaneous itemized deductions? ›

Californians can deduct certain expenses that they paid as part of their jobs, tax preparation fees, and some other miscellaneous expenses as part of doing work to earn income. These miscellaneous deductions can only be for the amount that is greater than 2% of your federal adjusted gross income (AGI).

Does New York allow miscellaneous itemized deductions? ›

Beginning with Tax Year 2018, the Tax Law allows you to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return (federal Schedule A, Itemized Deductions).

How much miscellaneous deductions can I claim? ›

The 2% rule limits the amount of miscellaneous expenses you can deduct. Under this guideline, you can only write off certain costs if the total amount is equal to more than 2% of your adjusted gross income (AGI).

How do you calculate miscellaneous expenses? ›

Make a list of all the miscellaneous expenses you can identify. Assign an estimated amount to each item. Add 10% to each amount as a buffer to help you pay for costs you may have underestimated or missed. Add up the cost of all miscellaneous expenses and divide by 12 to get an amount to set aside each month.

What is the rule for deductions? ›

Rules for making deductions from your pay

Your employer is not allowed to make a deduction from your pay or wages unless: it is required or allowed by law, for example National Insurance, income tax or student loan repayments. you agree in writing to a deduction. your contract of employment says they can.

How much miscellaneous income do I have to claim? ›

What is a 1099-MISC and what does it mean? A 1099-MISC is a type of tax form. It is used to report miscellaneous income for individuals and companies who have been paid $600 or more in non-employee service payments during a calendar year with the exception of royalty payments of $10 or more.

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