The 2017 Tax Cuts and Jobs Act suspended miscellaneous itemized deductions for federal tax purposes; however, they are still available as itemized Alabama deductions.
To be deductible in Alabama, the total must exceed 2% of your adjusted gross income. So, if your total 2024 Alabama income is $100,000, only those expenses exceeding the $2,000 floor would be deductible. Common examples include unreimbursed job expenses, investment advisor fees, uniforms and protective clothing, job search expenses, professional dues, and home office expenses (not reimbursed).
Unless someone has significant investment expenses, most taxpayers simply do not have enough expenses to exceed the floor and qualify for a deduction. But, if you think you do, consider and collect documentation for all the potential deductions.
This series is intended to cover the most common deductions. Please keep in mind that there are always exceptions; what’s more, your situation or facts may be different from someone else. We recommend that you consult with your tax advisor before taking any action.
Complete Itemized Dedication Series
This series is intended to cover the most common deductions. Please keep in mind that there are always exceptions; what’s more, your situation or facts may be different from someone else. We recommend that you consult with your tax advisor before taking any action.
Part 1: The Basics
Part 2: Deductions and Medical Expenses
Part 3: Deduction for Taxes
Part 4: Deducting Mortgage Interest & Investment Interest
Part 5: Contributions & Charitable Giving
Part 6: Casualty & Theft Losses
