Which of the following expenses is deductible, but subject to the 2% limitation on Form 1040, Schedule A; Job Expenses and Most Other Miscellaneous Itemized Deductions?
A. A blue suit for an accountant
b. Uniforms for a UPS delivery person
c. The cost of hauling tools to work in the trunk of a car
is it B
Yes, uniforms for a UPS delivery person (option B) is a deductible expense subject to the 2% limitation on Form 1040, Schedule A.
To determine which expenses are subject to the 2% limitation on Form 1040, Schedule A, you can refer to IRS Publication 529, "Miscellaneous Deductions".
In this case, uniforms for a UPS delivery person would qualify as a deductible expense, as it is considered a job expense. The 2% limitation means that the total amount of job expenses and most other miscellaneous itemized deductions must exceed 2% of your adjusted gross income (AGI) before they can be deducted. So, you can only deduct the portion that exceeds 2% of your AGI.
It's important to note that the other options provided, namely a blue suit for an accountant (option A) and the cost of hauling tools to work in the trunk of a car (option C), are not subject to the 2% limitation. These expenses may be deductible, but they fall under different categories and might have their own specific rules and limitations. It's always a good idea to consult IRS publications or a tax professional for accurate advice regarding specific deductions.