The federal Tax Cuts and Jobs Act suspended all miscellaneous deductions referenced under IRC 67, for the tax years 2018 through 2025.
Miscellaneous itemized deductions are those deductions that would have been subject to the two percent of adjusted gross income limitation. These deductions are also suspended for Montana income tax purposes.
The suspended deductions include, but are not limited to:
- Unreimbursed employee expenses
- Investment fees
- Tax preparation fees
- Most casualty and theft loss not related to income producing property
For tax year 2018, line 18 of the Montana Itemized Deductions Schedule refers to miscellaneous deductions that are not subject to the two percent floor and reportable on federal Form 1040, Schedule A, line 16, such as:
- Net Qualified Disaster Losses, or
- Deductions for the repayment of under a claim of right amounts such as Social Security benefits.
Casualty and theft losses of income-producing property and gambling losses, which are also deductible on federal Form 1040, Schedule A, line 16, are deductible on lines 15 and 17 respectively on the Montana Itemized Deductions Schedule.