Page 103 - 2020 Publication 17

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
unless you fall into one of the qualified catego- Unreimbursed Employee You can deduct only unreimbursed em-
ries of employment claiming a deduction relat- ployee expenses that are paid or incurred dur-
ing to unreimbursed employee expenses. Mis- Expenses ing your tax year, for carrying on your trade or
cellaneous itemized deductions are those business of being an employee, and ordinary
deductions that would have been subject to the You can no longer claim a deduction for unreim- and necessary.
2%-of-AGI limitation. You can still claim certain bursed employee expenses unless you fall into An expense is ordinary if it's common and
expenses as itemized deductions on Sched- one of the following categories of employment. accepted in your trade, business, or profession.
ule A (Form 1040), Schedule A (1040-NR), or • Armed Forces reservists. An expense is necessary if it's appropriate and
as an adjustment to income on Form 1040 or helpful to your business. An expense doesn't
1040-SR. This chapter covers the following top- • Qualified performing artists. have to be required to be considered neces-
ics. • Fee-basis state or local government offi- sary.
• Miscellaneous itemized deductions. cials.
• Expenses you can't deduct. • Employees with impairment-related work Educator Expenses
expenses.
• Expenses you can deduct. If you were an eligible educator in 2020, you
• How to report your deductions. Categories of Employment can deduct up to $250 of qualified expenses
you paid in 2020 as an adjustment to gross in-
You must keep records to verify your come on Schedule 1 (Form 1040), line 10,
deductions. You should keep receipts, You can deduct unreimbursed employee ex- rather than as a miscellaneous itemized deduc-
RECORDS canceled checks, substitute checks, fi- penses only if you qualify as an Armed Forces tion. If you and your spouse are filing jointly and
nancial account statements, and other docu- reservist, a qualified performing artist, a fee-ba- both of you were eligible educators, the maxi-
mentary evidence. For more information on re- sis state or local government official, or an em- mum deduction is $500. However, neither
cordkeeping, see What Records Should I ployee with impairment-related work expenses. spouse can deduct more than $250 of his or her
Keep? in chapter 1. Armed Forces reservist (member of a re- qualified expenses. For additional information,
serve component). You are a member of a see Educator Expenses in Pub. 529, Miscella-
reserve component of the Armed Forces of the neous Deductions.
Useful Items United States if you are in the Army, Navy, Ma- Educator expenses include amounts
You may want to see: rine Corps, Air Force, or Coast Guard Reserve; TIP paid or incurred after March 12, 2020,
the Army National Guard of the United States; for personal protective equipment, dis-
or the Reserve Corps of the Public Health Serv-
Publication ice. infectant, and other supplies used for the pre-
vention of the spread of coronavirus. For more
463 463 Travel, Gift, and Car Expenses Qualified performing artist. You are a information, see the instructions for Schedule 1
qualified performing artist if you: (Form 1040), line 10 and Educator Expenses in
525 525 Taxable and Nontaxable Income Pub. 529, Miscellaneous Deductions.
1. Performed services in the performing arts
529 529 Miscellaneous Deductions as an employee for at least two employers
during the tax year, Expenses You Can’t
535 535 Business Expenses
2. Received from at least two of the employ- Deduct
547 547 Casualties, Disasters, and Thefts ers wages of $200 or more per employer, Because of the suspension of miscellaneous

575 575 Pension and Annuity Income 3. Had allowable business expenses attribut- itemized deductions, there are two categories
able to the performing arts of more than of expenses you can't deduct: miscellaneous
587 587 Business Use of Your Home 10% of gross income from the performing itemized deductions subject to the 2%-of-AGI
arts, and limitation, and those expenses that are tradi-
946 946 How To Depreciate Property 4. Had AGI of $16,000 or less before deduct- tionally nondeductible under the Internal Reve-
Form (and Instructions) ing expenses as a performing artist. nue Code. Both categories of deduction are dis-
cussed next.
Fee-basis state or local government offi-
Schedule A (Form 1040) Schedule A (Form 1040) Itemized cial. You are a qualifying fee-basis official if
Deductions you are employed by a state or political subdivi- Miscellaneous Deductions Subject
2106 2106 Employee Business Expenses sion of a state and are compensated, in whole to 2% AGI
or in part, on a fee basis.
Unless you fall into one of the qualified catego-
8839 8839 Qualified Adoption Expenses Employee with impairment-related work ries of employment under Unreimbursed Em-
expenses. Impairment-related work expenses ployee Expenses, earlier, miscellaneous item-
Schedule K-1 (Form 1041) Schedule K-1 (Form 1041) Beneficiary's are the allowable expenses of an individual with ized deductions that are subject to the
Share of Income, Deductions, physical or mental disabilities for attendant care 2%-of-AGI limitation can no longer be claimed.
Credits, etc. at his or her place of employment. They also in- For expenses not related to unreimbursed em-
For these and other useful items, go to IRS.gov/ clude other expenses in connection with the ployee expenses, you generally can't deduct
the following expenses, even if you fall into one
Forms. place of employment that enable the employee of the qualified categories of employment listed
to work. See Pub. 463, Travel, Gift, and Car Ex- earlier.
Miscellaneous penses, for more details.
Itemized Deductions Allowable unreimbursed employee expen- Appraisal Fees
ses. If you qualify as an employee in one of
the categories mentioned above, you may be Appraisal fees you pay to figure a casualty loss
You can no longer claim any miscellaneous able to deduct the following items as unreim- or the fair market value of donated property are
itemized deductions that are subject to the bursed employee expenses. miscellaneous itemized deductions and can no
2%-of-AGI limitation, including unreimbursed Unreimbursed employee expenses for indi- longer be deducted.
employee expenses. However, you may be viduals in these categories of employment are
able to deduct certain unreimbursed employee deducted as adjustments to gross income.
business expenses if you fall into one of the fol- Qualified employees listed in one of the catego-
lowing categories of employment listed under ries above must complete Form 2106 to take
Unreimbursed Employee Expenses next. the deduction.
Chapter 12 Other Itemized Deductions Page 99