Simple English definitions for legal terms
Read a random definition: fraud in the inducement
A miscellaneous itemized deduction is a type of deduction that can be taken on a tax return for certain expenses, such as job or investment expenses, that are not included in other deduction categories. This deduction is only available to taxpayers who choose to itemize their deductions and whose total miscellaneous deductions exceed a certain percentage of their adjusted gross income.
MISCELLANEOUS ITEMIZED DEDUCTION
A miscellaneous itemized deduction is an expense that can be subtracted from adjusted gross income to determine taxable income. This deduction includes job or investment expenses and other deductions that are not allowed in computing adjusted gross income or personal exemptions. It is only allowed to taxpayers who itemize their deductions and whose total miscellaneous itemized deductions exceed a certain percentage of their adjusted gross income.
For example, if a taxpayer has a total adjusted gross income of $50,000 and their miscellaneous itemized deductions total $5,000, they can only deduct the amount that exceeds 2% of their adjusted gross income, which is $1,000. Therefore, they can only deduct $4,000 from their taxable income.