733 / What are miscellaneous itemized deductions? What limits apply?

“Miscellaneous itemized deductions” are deductions from adjusted gross income (“itemized deductions”) other than the deductions for (1) interest, (2) taxes, (3) non-business casualty losses and gambling losses, (4) charitable contributions, (5) medical and dental expenses,
(6) impairment-related work expenses for handicapped employees, (7) estate taxes on income in respect of a decedent, (8) certain short sale expenses (see Q 7529, Q 7530), (9) certain adjustments under the IRC claim of right provisions, (10) unrecovered investment in an annuity contract, (11) amortizable bond premium (see Q 7654, Q 7664), and (12) certain expenses of cooperative housing corporations.¹

“Miscellaneous itemized deductions” were allowed only to the extent that the aggregate of all such deductions for the taxable year exceeded 2 percent of adjusted gross income.² For tax years other than 2010 through 2012 (and 2018-2025 under the 2017 Tax Act), miscellaneous itemized deductions were also subject to the phaseout for certain upper income taxpayers (see Q 732).

Miscellaneous itemized deductions generally include unreimbursed employee business expenses, such as professional society dues or job hunting expenses, and expenses for the production of income, such as investment advisory fees or the cost for storage of taxable securities in a safe deposit box.³