Question

Issac has AGI of $73,400 and incurred the following expenses. How much of the business and personal expenditures are deductible (after any limitations) either as miscellaneous itemized deductions or as other itemzied deductions?

Cost of uniforms required by his employer...... $535

Tax return preparation fees..... $600

Fee paid for a safe deposit box used to store papers and documents relatating to taxable income-producing investments.... $65

Job-hunting costs...$1000

Answer 1

Job hunting costs are not deductible. Uniforms, tax return preparation fee, and safe deposit box are deductible subject to 2% AGI floor limitation.

Deduction is:

Particulars	Amount	Amount
Uniforms		535.00
Tax return preparation fee		600.00
Safe deposit box		65.00
Total deductions		1,200.00
AGI	73,400.00
2% of AGI	1,468.00	1,468.00
Deduction amount		0.00

No deduction allowable as allowable deductible expenses does not exceed 2% of AGI.