Page 11

that were limited in an earlier year. The same limits apply this year to your car- ryover amounts as applied to those amounts in the earlier year. After apply- ing those limits, enter the amount of your carryover that you are allowed to deduct this year. See Pub. 526 for de- tails. Casualty and Theft Losses Line 20 Complete and attach Form 4684 to fig- ure the amount of your loss to enter on line 20. You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes; car, boat, and other accidents; and corrosive dry- wall. You may also be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution. You can deduct personal casualty or theft losses only to the extent that: 1. The amount of each separate casualty or theft loss is more than $100, and 2. The total amount of all losses during the year (reduced by the $100 limit discussed in (1)) is more than 10% of the amount on Form 1040, line 38. Corrosive drywall losses. If you paid for repairs to your personal residence or household appliances because of corro- sive drywall, you may be able to deduct on line 20 those amounts paid. See Pub. 547 for details. Use Schedule A, line 23, to deduct the costs of proving that you had a prop- erty loss. Examples of these costs are appraisal fees and photographs used to establish the amount of your loss. Job Expenses and Certain Miscellaneous Deductions You can deduct only the part of these expenses that exceeds 2% of the amount on Form 1040, line 38. Pub. 529 discusses the types of ex- penses that can and cannot be deducted. Examples of Expenses You Can't Deduct Political contributions. Legal expenses for personal mat- ters that don't produce taxable income. Lost or misplaced cash or proper- ty. Expenses for meals during regular or extra work hours. The cost of entertaining friends. Commuting expenses. See Pub. 529 for the definition of commuting. Travel expenses for employment away from home if that period of em- ployment exceeds 1 year. See Pub. 529 for an exception for certain federal em- ployees. Travel as a form of education. Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment. Club dues. Expenses of adopting a child. But you may be able to take a credit for adoption expenses. See Form 8839 and its instructions for details. Fines and penalties. Expenses of producing tax-exempt income. Line 21 Unreimbursed Employee Expenses Enter the total ordinary and necessary job expenses you paid for which you weren't reimbursed. (Amounts your em- ployer included in box 1 of your Form W-2 aren't considered reimbursements.) An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A neces- sary expense is one that is helpful and appropriate for your business. An ex- pense doesn't have to be required to be considered necessary. But you must fill in and attach Form 2106 if either (1) or (2), next, applies. 1. You claim any travel, transporta- tion, meal, or entertainment expenses for your job. 2. Your employer paid you for any of your job expenses that you would otherwise report on line 21. If you used your own vehicle, are using the standard mileage rate, and (2), earlier, doesn't apply, you may be able to file Form 2106-EZ instead. If you don't have to file Form 2106 or 2106-EZ, list the type and amount of each expense on the dotted line next to line 21. If you need more space, attach a statement to your paper return showing the type and amount of each expense. Enter the total of all these expenses on line 21. Don't include on line 21 any ed- ucator expenses you deducted on Form 1040, line 23. Examples of other expenses to in- clude on line 21 are: Safety equipment, small tools, and supplies needed for your job. Uniforms required by your em- ployer that aren't suitable for ordinary wear. Protective clothing required in your work, such as hard hats, safety shoes, and glasses. Physical examinations required by your employer. Dues to professional organizations and chambers of commerce. Subscriptions to professional jour- nals. Fees to employment agencies and other costs to look for a new job in your present occupation, even if you don't get a new job. Certain business use of part of your home. For details, including limits that apply, use TaxTopic 509 (see the Form 1040 instructions) or see Pub. 587. Certain educational expenses. For details, use TaxTopic 513 (see the Form 1040 instructions) or see Pub. 970. Re- duce your educational expenses by any tuition and fees deduction you claimed on Form 1040, line 34. You may be able to take a credit for your educational expenses instead of a deduction. See Form 8863 for details. Line 22 Tax Preparation Fees Enter the fees you paid for preparation of your tax return, including fees paid for filing your return electronically. If you paid your tax by credit or debit card, TIP CAUTION ! CAUTION ! A-11