Table of Contents
Limit on itemized deductions. For 2007, if your adjusted gross income is more than $156,400 ($78,200 if you are married filing separately), you may have to reduce the amount of certain itemized deductions, including most miscellaneous deductions. For more information and a worksheet, see the instructions for Schedule A (Form 1040), line 29, or Schedule A (Form 1040NR), line 17.
Standard mileage rate. The 2007 standard mileage rate for business use of a vehicle is 48½ cents per mile.
Local lodging. You may be able to deduct the cost of lodging while you are not traveling away from home. See Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. This publication covers the following topics.
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Deductions subject to the 2% limit.
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Deductions not subject to the 2% limit.
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Expenses you cannot deduct.
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How to report your deductions.
Some of the deductions previously discussed in this publication are adjustments to income rather than miscellaneous deductions. These include certain employee business expenses that must be listed on Form 2106 or 2106-EZ and some that are entered directly on Form 1040. Those deductions, which are discussed in Publication 463, Travel, Entertainment, Gift, and Car Expenses, include employee business expenses of officials paid on a fee basis and performing artists.
Note.
Generally, nonresident aliens are allowed miscellaneous itemized deductions to the extent they are directly related to effectively connected income.
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
Publication
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463 Travel, Entertainment, Gift, and Car Expenses
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525 Taxable and Nontaxable Income
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535 Business Expenses
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587 Business Use of Your Home (Including Use by Daycare Providers)
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946 How To Depreciate Property
Form (and Instructions)
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Schedule A (Form 1040)
Itemized Deductions -
2106
Employee Business Expenses -
2106-EZ
Unreimbursed Employee Business Expenses
See How To Get Tax Help near the end of this publication for information about getting these publications and forms.
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