Table of Contents

• Publication 529 - Introductory Material
  • What's New
  • Reminders
  • Introduction
    • Ordering forms and publications.
    • Tax questions.
  • Useful Items - You may want to see:
• Publication 529 - Main Content
  • Deductions Subject to the 2% Limit
    • Unreimbursed Employee Expenses
    • Tax Preparation Fees
    • Other Expenses
  • Deductions Not Subject to the 2% Limit
    • List of Deductions
  • Nondeductible Expenses
    • List of Nondeductible Expenses
  • How To Report
    • Who can use Form 2106-EZ.
    • Computer used in a home office.
    • Example
  • How To Get Tax Help
    • Low Income Taxpayer Clinics (LITCs).
• Publication 529 - Additional Material
• Index

Table of Contents

• What's New
• Reminders
• Introduction
  • Ordering forms and publications.
  • Tax questions.
• Useful Items - You may want to see:

Credit or debit card convenience fees paid. If you pay your income tax (including estimated tax payments) by credit or debit card, you can deduct the convenience fee charged by the card processor. See Credit or Debit Card Convenience Fees later.

Limit on itemized deductions. For 2009, if your adjusted gross income is more than $166,800 ($83,400 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.

Losses from Ponzi-type investments. Special rules apply to theft losses from Ponzi-type investment arrangements. See Form 4684 and Instructions for more information.

Standard mileage rate. The 2009 rate for business use of a vehicle is 55 cents per mile.

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.

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 Form 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.

You must keep records to verify your deductions. You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. For more information on recordkeeping, see Publication 552, Recordkeeping for Individuals.