Are miscellaneous itemized deductions allowed or not? Can someone clarify this for me?

Thanks for explaining that. So if I started doing some freelance work on the side (about 15-20 hours a week), would I be able to deduct my home office expenses through that business instead? Also, does this mean the TCJA provisions expire in 2025 and these deductions might come back in 2026?

If you have legitimate self-employment income, you can potentially deduct home office expenses related to that business on Schedule C, but only the portion exclusively and regularly used for your self-employment activities. The space can't be used for both your W-2 job and your freelance work - it must be exclusively for the self-employment business. Yes, the TCJA provisions that suspended miscellaneous itemized deductions are scheduled to expire after 2025. Unless Congress extends these provisions or makes them permanent, these deductions could potentially return in 2026. However, tax laws change frequently, so we'll need to see what happens as we get closer to that date.

Does it actually work with complex tax situations? I have W-2 income, rental property, and some stocks I sold last year. I'm worried about missing deductions but don't want to waste time on another tool that gives generic advice.

I'm skeptical about AI tax tools - how does it compare to just using TurboTax or H&R Block? I've had issues with tax software missing things in the past, especially around unusual deductions. Does it actually find things those programs miss?

It handles complex situations really well - that's actually where it shines. I have W-2 income plus a side business, and it correctly identified which expenses belonged where. For rental properties, it specifically analyzes depreciation schedules and identifies commonly missed deductions like travel to check on properties. For stock sales, it can review your transactions to optimize tax treatment. The difference from TurboTax or H&R Block is it's analyzing your actual documents and past returns to find patterns and opportunities specific to your situation. In my case, it found state-specific deductions that TurboTax completely missed and explained exactly how certain expenses needed to be categorized. It's more like having a tax pro review your specific documents than just answering generic questions.

Wait, how does this actually work? Is it some kind of special phone number or what? I've literally spent DAYS of my life on hold with the IRS and usually just give up.

Sorry but I call BS on this. There's no way to "skip the line" with the IRS. They're chronically understaffed and everyone has to wait in the same queue. Sounds like a scam to me.

It's not a special phone number - they use technology that basically waits on hold for you and then calls you when they reach an IRS agent. It dials and navigates the IRS phone trees automatically, then when it gets a human, it connects you. You don't have to stay on the phone during the hold time. I completely understand the skepticism - I felt the same way! But it's not "skipping" the line - you're still in the queue, but their system is doing the waiting instead of you. It's the same concept as those "call back when it's your turn" features some companies have, except it works with agencies like the IRS that don't offer that feature themselves. I was surprised it actually worked too, but after being on hold for 3+ hours multiple times myself, I was willing to try anything.

Do you know which other states besides California allow these deductions? I'm in Pennsylvania and trying to figure out if I can deduct about $2,100 in professional membership fees and required continuing education that my employer doesn't cover.

I know for sure that California, New York, and Minnesota still allow these deductions on their state returns. Pennsylvania is actually another state that allows them! You should be able to deduct those professional membership fees and continuing education expenses on your PA state return. The exact rules vary by state, but generally you'd include these expenses on your state's equivalent of the federal Schedule A. In Pennsylvania, you would report these on PA Schedule UE (Unreimbursed Employee Business Expenses). The great thing about PA is they don't even have the 2% of AGI floor that used to exist federally - you can deduct all qualifying expenses.

How exactly do these "accountable plans" work? My employer is making us buy all our own equipment for working remotely ($3,000+ this year alone) and just saying "that's the cost of having flexibility." Would love to have some specifics I could bring to them.

An accountable plan is basically a formal reimbursement arrangement that meets IRS requirements. For it to qualify, three conditions must be met: (1) expenses must have a business connection, (2) employees must adequately account for expenses within a reasonable time (usually 60 days), and (3) employees must return any excess reimbursement within a reasonable time. Under an accountable plan, your employer can reimburse you for legitimate business expenses (like that $3,000+ in remote work equipment) and those reimbursements aren't considered taxable income to you. The company gets to deduct these as business expenses instead of you trying to claim them as miscellaneous itemized deductions (which aren't allowed anyway right now). You could present this to HR as a win-win: employees get tax-free reimbursement for necessary business expenses, and the company gets a legitimate business deduction. Many companies implement these plans through expense management software or simple receipt submission processes. The key is having clear policies about what qualifies and proper documentation requirements.