Other Deductible Expenses Deduction

Other Deductible Expenses Deduction

What are other deductible expenses?

Some types of expenses, which are listed below, fall into a category known as other deductible expenses.

That means you’ll be entering these expenses in the Other Deductible Expenses area of Deductions and Credits, rather than in the Charitable Contributions or Casualties and Thefts topics. Don’t worry, we’ll walk you through these as you work on your return.

Expenses that qualify as other deductible expenses:

Repayments over $3,000: If you were required to repay an amount that you previously included in your income such as wages, unemployment, or other nonbusiness income, enter the amount in this section. See IRS Publication 525 (Repayments) for more information.

Unrecovered investment in an annuity: A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree’s investment. If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree’s final income tax return. See IRS Publication 575 for more information.

Federal Estate Tax on Income in Respect of a Decedent: You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. See IRS Publication 559 for more information.

IRS Publication 529 contains additional examples of less common deductions.

How do I get these deductions?

 – You must itemize your deductions. Learn More About Itemizing Deductions