The item that might hit more taxpayers than any other when it comes to Miscellaneous Itemized Deductions is "Unreimbursed Employee Expenses." This may apply to taxpayers who work from home or are required to travel frequently and may not be reimbursed for their mileage and other types of expenses.
As an example ... you are a salesperson and drive daily to visit clients, pitch potential customers, deliver samples or products, etc, and your company pays you as a W-2 employee, maybe a base salary with a commission. They also pay you 25 cents a mile. You keep a mileage log, like all good, recordkeeping taxpayers, and rack up 30,000 miles for business travel this year. The federal mileage rate for 2018 is 54.5 cents / mile. You're reimbursed @ 25 so, on your tax return, you USED to be able to take a deduction of $8,850 as an unreimbursed employee expense ... along with maybe a portion of your cell phone, some supplies or equipment you purchased, and for some training that you did.
Under the new law items such as tax prep fees, investment expenses, and the above "unreimbursed employee expenses" are no longer deductible.
Now remember the long-term vision of the parties pushing this tax reform -- to simplify the tax code. If you've read my prior blogs you know they reduces the SALT deduction and mortgage deduction, do away with some of the other itemized deductions ... in combination with almost doubling the standard deduction. I believe the writing is on the wall here to support the push towards that 15-line postcard tax return. We're not there yet and it will most likely be a good, long while before we are, but it's looks like that's the direction we're headed as a nation.
We are on top of this new tax law here at LCI Taxes and are ready to help you and your family prepare for these changes as well as any others that may be forthcoming. Give us a call at 386-586-3976 with questions or to schedule your appointment!
Chris Kocher CPA