The Tax Cut and Jobs Act of 2017 (TCJA) rules eliminate most deductions that previously fell under the category of “miscellaneous itemized deductions.” Many of these deductions were subject to a 2%-of-AGI threshold, meaning you could only deduct the amount that exceeded 2% of your AGI. Under the TCJA, the 2%-of-AGI threshold no longer applies, but you can no longer deduct the following.
- Unreimbursed job expenses, such as work-related travel and union dues
- Unreimbursed moving expenses, if you had to move to take a new job (exception: active-duty military moving because of military orders)
- Most investment expenses, including advisory and management fees
- Tax preparation fees (except for fees to prepare Schedules C, E, or F—which are considered to be deductible business expenses)
- Fees to contest an IRS ruling
- Hobby expenses
- Personal casualty or theft losses, except when they occur in a federally designated disaster area
Here’s what you can still deduct:
- Gambling losses up to the amount of your winnings
- Interest on money you borrow to buy an investment
- Casualty and theft losses on income-producing property
- Federal estate tax on income from certain inherited items, such as IRAs and retirement benefits
- Impairment-related work expenses for people with disabilities
- Interest on student loans (limited to the lesser of $2,500 or total interest you paid in the year)