Miller, age 38, is a single taxpayer and is the sales manager of Standard Co., an auto stereo dealer.
Miller's adjusted gross income (AGI) for the year is $67,000, which includes $4,000 of gambling winnings.
Miller's job is to oversee the sales operations of Standard Co. Miller has a private office at the dealership and is responsible for attracting new customers and retaining current customers. As the sales manager, Miller has the authority to hire and discharge sales personnel.
During the year, Miller attended several trade shows. While at these shows, Miller entertained clients, met with manufacturers, and spent some time gambling. During the year, Miller incurred and can properly document $5,000 of gambling losses.
Miller's mother incurred unreimbursed medical expenses during the year totaling $4,200. Because she was unable to pay these medical expenses herself, Miller paid them on her behalf. Miller cannot claim the mother as a dependent solely because her gross income is $10,000.
During the year, Miller paid the business expenses shown in the following table. Miller's employer did not reimburse any of these expenses. In column C of the table, enter the amounts that are reportable unreimbursed business expense deductions, subject to a statutory percentage limitation, if any. If none of a particular unreimbursed expense is a reportable business expense deduction, enter a zero for that expense in Column C. The total amount deductible on Schedule A, Itemized Deductions, of Form 1040, US Individual Income Tax Return, as unreimbursed employee business expenses will automatically calculate.
NOTE: Disregard all AGI limitations, if any, in completing the first section of this table. Then follow the instructions in the table in completing the second section.
In the following section, indicate the dollar amount of the limitations, if any, that apply to the expenses above.Enter any limitation as a negative number.
13. AGI limitation (in dollars)